The US and China would suspend their respective tariffs on each other’s goods for 90 days while they negotiate, the two nations announced in a joint statement.
The announcement follows a weekend of intensive trade negotiations in Geneva between officials from the world’s two largest economies, during which both sides reported making “substantial progress.”
According to the agreement, the US will reduce the duties on Chinese imports from 145% to 30%, while Beijing has agreed to lower its import duties on American goods from 125% to 10%.
The deal marks a breakthrough in de-escalating a trade war that impacted global markets.
The tariff revisions will be imposed by May 14.
The US–China trade war was already weighing on both economies. US GDP shrank for the first time since early 2022, as importers rushed to bring in goods to avoid rising tariffs. Meanwhile, China’s exports to the US dropped sharply, hitting its vast manufacturing sector. Factory activity fell at its fastest pace in 16 months, prompting Beijing to consider new economic stimulus.
The two sides also agreed to establish “a mechanism to continue discussions about economic and trade relations,” according to the joint statement.