U.S. and China Reach Historic Tariff Reduction Agreement

In a significant development this morning, the United States and China announced a mutual agreement to reduce “reciprocal” tariffs by 115 percent for a period of 90 days, effective by May 14. The decision marks a notable shift in the trade dynamics between the two largest economies in the world.

The agreement was confirmed by U.S. Treasury Secretary Scott Bessent following face-to-face negotiations in Geneva. The move is seen as a strategic effort to ease escalating trade tensions and foster a more stable economic relationship between the nations.

Financial markets reacted positively to the news, with U.S. stocks surging. The S&P 500 and Nasdaq futures climbed up to 3.5 percent while the dollar strengthened and 10-year Treasury yields rose. Analysts expressed cautious optimism, noting that while the deal is a positive step, the temporary nature of the agreement leaves room for future uncertainties.

The tariff reduction is expected to have a broad impact, potentially lowering prices on a range of consumer goods and industrial products. However, experts say that the 90-day window is short, and it remains to be seen whether this deal will evolve into something more permanent.