US, China agree to pause trade tariffs for 90 days

New Delhi, May 12: The United States and China have agreed to suspend the imposition of new trade tariffs against each other for the next 90 days. US Treasury Secretary Scott Bessent made the announcement after talks in Geneva. He said both countries will cut their tariffs by 115% as reported by international news agencies. China’s Ministry of Commerce also confirmed that it will suspend all extra taxes it had added on US goods since April 2, according to Reuters.

The agreement came after a formal meeting between top trade officials from both countries, US Treasury Secretary Bessent and Chinese Vice-Premier He Lifeng in Geneva. This was their first face-to-face meeting since tensions rose earlier this year over trade. Earlier, US President Donald Trump praised the talks, calling it a “total reset” and said the meeting went “very well.”

Over the past months, the US and China have been hitting each other with high tariffs—taxes on goods coming into their countries. The US had imposed tariffs as high as 145% on Chinese products, while China retaliated with tariffs of up to 125% on American goods. Trump’s announcement of a new universal import tariff last month, which included China and the European Union, had further increased the tension.

Both economies had begun to feel the pain from the trade war. The US economy contracted by 0.3% in the first quarter, prompting businesses to rush to import goods before new tariffs took effect. Chinese exports also fell as American demand dropped.