U.S., China Ease Tariffs in Major Trade Truce

The United States and China have reached a significant truce in their ongoing trade war following high-level discussions in Geneva, agreeing to roll back the majority of the tariffs each imposed, though some tariffs will remain in place. The U.S. will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs from 125% to 10%, signaling a partial easing of tensions. Both nations have committed to suspending a substantial portion of retaliatory tariffs for an initial 90-day period and have agreed to establish a mechanism for continued economic and trade dialogue. The deal reflects the tangible economic harm caused by the high tariffs, which had brought bilateral trade to a near standstill, and demonstrates a mutual desire to stabilize their economic relationship. Despite this progress, some issues remain unresolved, including rare earth export controls and specific duties on items like electric vehicles and aluminum, necessitating further negotiations. Concurrently, China is expanding its global trade influence through the China-CELAC Forum, strengthening ties with Latin American countries amid ongoing tensions with the U.S.