US, China agree to pause sky-high tariffs for 90 days

Published: Monday, May 12, 2025 at 11:32 am

**US and China Agree to 90-Day Tariff Truce, Easing Trade War Tensions**

In a significant development for the global economy, the United States and China have agreed to a 90-day pause in their escalating trade war. This truce, announced after intense negotiations in Geneva, will see both nations roll back some of the hefty tariffs they've imposed on each other's goods.

The agreement involves a reduction in tariffs, with the U.S. agreeing to lower its rate on Chinese goods by 115 percentage points, and China reciprocating with a similar reduction on U.S. imports. This move has been met with relief in financial markets, with stock indexes like the S&P 500 and Dow Jones Industrial Average experiencing substantial gains. Oil prices also saw a surge, and the U.S. dollar strengthened against other currencies.

The deal aims to allow for further discussions on resolving the underlying trade disputes between the two economic giants. Both sides have expressed a desire to avoid a complete decoupling of their economies, recognizing the potential damage such a scenario could inflict. The agreement also includes China's commitment to suspend or remove other measures taken in response to U.S. tariffs.

While the 90-day suspension offers a window of opportunity for negotiation, uncertainty remains. Experts caution that a lasting resolution is not guaranteed, and the full impact of the existing tariffs and trade penalties is still unclear. Businesses are hoping for more predictability to maintain normal operations and investment decisions.

BNN's Perspective: This truce is a welcome step towards de-escalation, but it's crucial to approach the next 90 days with cautious optimism. While the pause offers a chance for constructive dialogue, the underlying issues driving the trade war are complex and deeply rooted. A comprehensive and lasting solution will require both sides to make significant concessions and address the core concerns that have fueled the conflict. The global economy, and businesses worldwide, are certainly hoping for a positive outcome.

Keywords: US China trade war, tariffs, trade truce, Geneva talks, stock market, global economy, tariff reduction, trade disputes, 90-day suspension, trade negotiations, US tariffs, China tariffs, trade agreement, economic impact, market reaction

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