U.S. and China Announce Major Tariff Rollback in Surprise Trade Breakthrough
Hong Kong (CNN) — The United States and China have agreed to sharply reduce tariffs on each other’s goods for an initial 90-day period, marking a surprise breakthrough in trade talks that lifted global markets on Monday.
The agreement, revealed in a joint statement following intense weekend negotiations in Geneva, sees the U.S. cutting tariffs on Chinese imports from 145% to 30%, while China will reduce its tariffs on American goods from 125% to 10%.
The deal also includes the formation of a new dialogue mechanism to manage ongoing economic and trade relations. The group will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.
“These discussions may be held in China, the United States, or a third country by mutual agreement,” the statement said. “Working-level consultations may also take place as needed to address specific economic and trade issues.”
The announcement marks a rare moment of cooperation between the world’s two largest economies and signals a possible thaw in years of escalating trade tensions.
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