US, China Announce 90-Day Suspension of Tariffs Amid Trade Talks

The United States and China have jointly agreed to pause specific tariff measures for a 90-day period as part of their ongoing trade negotiations, officials announced Monday.

U.S. Treasury Secretary Scott Bessent confirmed the agreement, stating that both Washington and Beijing will scale back select tariff rates in a reciprocal manner during the three-month pause. According to Bessent, the U.S. will reduce tariffs on imports from China from the current 145 per cent to 30 per cent, while China will lower its tariffs on American goods from 125 per cent to 10 per cent.

The arrangement, finalized after two days of bilateral discussions in Geneva, reflects a mutual effort to de-escalate economic tensions between the world's largest economies. The two sides also pledged to reduce existing tariff levels by 115 per cent on both ends, a move designed to restore stability in global trade flows.

“The outcome includes a 90-day hold on further tariff actions and a mutual commitment to reduce rates,” Bessent said. He emphasized that the conversations were “productive” and signaled an intention to avoid future escalations.

The Chinese Ministry of Commerce stated that the tariff suspensions and supporting measures are scheduled to be implemented by May 14. In addition, Beijing plans to eliminate or suspend non-tariff retaliatory steps that had been introduced since April 2.

Market reactions were immediate. The Hang Seng Index in Hong Kong surged 762.94 points, closing at 23,630.68 — a gain of 3.34 per cent — amid optimism surrounding the easing trade environment. Oil prices also climbed over 3 per cent in response to the announcement, signaling a positive shift in investor sentiment.

Trade talks occurred over the weekend at the residence of the Swiss UN ambassador. Although few specifics were revealed at the time, Bessent and U.S. Trade Representative Jamieson Greer hinted at substantial headway. Greer declined to elaborate but confirmed that the negotiations moved forward constructively.

President Donald Trump lauded the development on his social media platform, describing it as “GREAT PROGRESS” and suggesting the discussions could result in a “total reset” of the current tariff regime that has disrupted global markets since 2018.

Despite cautious optimism from U.S. officials, Chinese state media responded with restrained language. An editorial released on Saturday night stated that China would not support any outcome that infringes on its fundamental interests or challenges global trade fairness.

Bessent acknowledged that, while the temporary arrangement is a step toward de-escalation, more work remains. He noted that China's economic strategy has yet to pivot to a consumption-driven model, a longstanding issue in bilateral economic talks.