US and China Agree to Cut Tariffs After Weeks of Intensive Talks

The United States and China announced a temporary agreement on Friday to reduce tariffs on a wide range of goods, marking one of the most significant steps forward in trade relations between the two countries in years. Senior officials from both sides confirmed the deal after several weeks of intensive talks held in Geneva, Switzerland.

Under the new arrangement, the US will lower its tariffs on Chinese goods from 145 percent to 30 percent for a period of 90 days. China agreed to cut its retaliatory tariffs on American products from 125 percent to 10 percent during the same period. Both governments described the move as a step toward building a more stable economic relationship.

Global financial markets responded positively to the news, with stock prices rising in Asia, Europe, and the United States shortly after the announcement. Analysts said the deal could help ease pressure on supply chains that have been disrupted by the months-long trade dispute. Businesses in both countries have been struggling with higher costs and uncertain demand since tariffs were raised sharply earlier this year.

Despite the positive reaction, many experts warned that the 90-day window is short and that reaching a long-term agreement will be far more difficult. Key issues, including US concerns about Chinese technology policies and China's demands for equal market access, remain unresolved. Analysts say both sides will need to make significant compromises if they want to avoid returning to the high-tariff environment that has hurt businesses and consumers on both sides.