US, China Suspend Major Tariffs for 90 Days Amid Trade Talks

The United States and China have agreed to suspend a significant portion of the heavy reciprocal tariffs imposed on each other's goods for an initial period of 90 days, aiming to de-escalate the ongoing trade war and continue negotiations. Under this agreement, the U.S. will reduce its tariffs on Chinese imports from 145% to approximately 30%, maintaining a 10% baseline tariff, while China will lower its duties on American goods to around 10%. Both sides have agreed to roll back additional tariffs imposed by recent executive orders and to suspend non-tariff countermeasures, though some tariffs, including a 20% U.S. tariff related to fentanyl imports, will remain in place. The deal reflects a mutual recognition of the importance of their bilateral economic relationship and the global economy, with both countries committing to ongoing dialogue led by senior officials including China's Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent. The announcement was met with positive reactions in global markets, signaling investor optimism about reduced trade tensions. This temporary suspension and the establishment of a mechanism for continued talks aim to foster a more sustainable and mutually beneficial trade relationship.