Don’t miss the full story from our staff writers, whose reportage is the basis of this article.
President Trump announced Monday that the United States and China have agreed to a temporary reduction in tariffs during a 90-day negotiation period aimed at reaching a comprehensive trade deal.
Under the weekend agreement negotiated in Geneva, China will reduce its tariffs on U.S. goods from 125% to 10%, while the U.S. will cut its levies on Chinese goods from 145% to 30%. The 30% U.S. tariff includes a 20% levy related to the fentanyl crisis.
The deal also removes China’s “non-tariff countermeasures” against the U.S., making it easier for American entities to obtain permits for Chinese rare earth minerals. Wall Street responded positively to the news, with major indexes rallying significantly — the Dow Jones Industrial Average surged 2.8%, the S&P 500 rose 3.3%, and the Nasdaq jumped 4.3%.
Mr. Trump expressed confidence that China will “follow through” on commitments to open its markets to U.S. producers, stating the deal would be “fantastic for China” and “great for us.” He warned that tariffs would increase again if negotiations fail, though not to previous levels of 145%.
Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng in Geneva to de-escalate tensions and establish a framework for future talks. Mr. Bessent described the next phase as a “strategic” decoupling where the U.S. would reduce overreliance on key Chinese products without completely separating from Chinese trade.
The deal doesn’t affect sector-specific tariffs on products like steel, automobiles or pending tariffs on pharmaceuticals. The president emphasized addressing the $295.4 billion trade deficit with China and longstanding U.S. concerns about unfair trade practices, including intellectual property theft and industrial subsidies.
U.S. retailers welcomed the pause, with the National Retail Federation calling it a “critical first step” providing relief for businesses ordering merchandise for the holiday season. Republicans urged vigilance in ensuring China adheres to any agreement, while Democrats downplayed the development, with Sen. Christopher Murphy claiming “there is no deal.”
Mr. Trump also mentioned the negotiations would help address the fentanyl crisis by pressing China to crack down on precursor chemicals flowing to countries like Mexico.
Read more: Trump expects China to strike wider trade pact, says ’they want it very badly’
This article is written with the assistance of generative artificial intelligence based solely on Washington Times original reporting and wire services. For more information, please read our AI policy or contact Ann Wog, Managing Editor for Digital, at awog@washingtontimes.com
The Washington Times AI Ethics Newsroom Committee can be reached at aispotlight@washingtontimes.com.
