US Treasury Secretary Scott Bessent (left) and US Trade Representative Jamieson Greer announce a 90-day pause on tariffs after talks between US and Chinese officials in Geneva.Â
In a significant development for global trade, the United States and China have agreed to a 90-day pause in their escalating tariff war, substantially reducing tariffs on each other's goods. The US will cut tariffs on Chinese imports from 145% to 30%, while China will lower tariffs on American goods from 125% to 10%.
This agreement, reached during negotiations in Geneva, aims to ease tensions that have strained the global economy. US Treasury Secretary Scott Bessent confirmed the reductions Monday, emphasizing the importance of continued dialogue between the two nations.
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Financial markets responded positively to the news on Monday. The Dow Jones Industrial Average surged by 951 points, and the S&P 500 rose by 2.6%, approaching its all-time high set in February 2025, according to AP News. Chinese stocks also rallied, with Alibaba's shares climbing by 5.7%, buoyed by both the tariff news and the company's recent focus on artificial intelligence initiatives.
While the agreement has been welcomed by official Chinese media as a constructive step, public sentiment remains cautious, with skepticism about the durability of the truce. Analysts note that the pause is temporary and unresolved issues could reemerge if no comprehensive deal is reached.
For tech consumers, the tariff reductions could lead to lower prices on electronics and other goods. However, it's important to note that certain tariffs, such as the 20% levy on Chinese technology imports, remain in place. For more updates on how tariffs are impacting the products you use most often, explore the CNET tariff pricing tracker, which is updated daily.Â
