China and U.S. suspend trade war
U.S. and China reduce tariffs to prevent trade war fallout.
The United States has reduced tariffs on Chinese goods from a punitive 145% to 30%, while China has slashed its own duties on US imports to 10% for the next 90 days.
The tactical pause, negotiated in closed-door talks in Geneva, is intended to prevent further economic fallout from the trade war that erupted in April, reports Cryptopolitan.
The temporary deal is seen as a move to stabilize supply chains, not a long-term resolution, according to Treasury Secretary Scott Bessent.
Economic fallout leads to urgent negotiations
The tariff conflict escalated sharply in April when President Donald Trump raised import taxes on Chinese goods to 145%, prompting China to retaliate with 125% tariffs on American exports. The resulting economic disruption was immediate, with trade volumes plummeting and corporate leaders warning of severe consequences. Last month, Bessent acknowledged that the situation was “unsustainable,” leading to emergency talks in Geneva.
Short-term relief, long-term uncertainty
Despite the 90-day tariff reduction, both sides have made it clear that the agreement is a temporary measure. Bessent emphasized that the goal is to “stop the economic bleeding,” but broader trade issues remain unresolved. Executives and analysts warn that without a comprehensive deal, businesses will continue to face uncertainty as the truce expires and the possibility of tariff hikes looms once again.
Recently we wrote that major U.S. financial institutions are reducing dollar holdings and shifting investments to Europe as political chaos and trade disputes under the Trump administration erode confidence in the Federal Reserve and U.S. markets.
