The United States and China have agreed to a 90-day suspension of most tariffs in what represents a significant breakthrough in trade relations between the world’s largest economies.
Under the agreement, reciprocal tariffs will drop dramatically from 125% to just 10%, though the US will maintain its 20% duties on Chinese imports related to fentanyl, making the total US tariffs on China 30%.
US Treasury Secretary Scott Bessent announced the deal following productive talks in Lake Geneva, Switzerland. The tariff pause begins Wednesday, with both nations committing to continue economic and trade policy discussions.
Financial markets responded enthusiastically, with US stock futures jumping significantly—Nasdaq futures up 3.7%, S&P 500 futures up 2.7%, and the Dow gaining over 840 points. International markets, currency values, and oil prices also saw substantial gains.