• US and China agree to reduce tariffs by over 115% for 90 days.
• US tariffs on Chinese goods drop from 145% to 30%; Chinese tariffs on US goods decrease from 125% to 10%.
• This agreement follows high-level talks aimed at de-escalating trade tensions.
• Both countries established a dialogue mechanism for ongoing discussions on trade issues.
• Financial markets react positively, anticipating the possible easing of trade war impacts.

The United States and China have announced a significant agreement to temporarily reduce tariffs imposed on each other's goods for an initial period of 90 days. This deal is seen as a major step towards de-escalating the ongoing trade tensions that have marked the bilateral relationship, which intensified after US President Donald Trump implemented aggressive tariffs on China, elevating duties on imports to as high as 145 percent. Under the new agreement, US tariffs on Chinese imports will be slashed to 30 percent, while China's tariffs on American products will be reduced to 10 percent, according to reports from Channel News Asia, South China Morning Post, and Anadolu Agency.

The agreement was reached following two days of high-stakes negotiations in Geneva, where US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng led discussions. Bessent characterized the talks as "productive" and noted the high level of respect exhibited by both sides during the negotiations. Additionally, it was agreed that both countries would create a mechanism for ongoing dialogue on economic and trade relations, aimed at fostering a long-term sustainable partnership, as indicated by sources including Dawn and Al Jazeera.

This temporary reduction in tariffs is designed to alleviate the strain caused by previous tariffs, which had exacerbated financial market volatility and raised inflation fears globally. The financial markets responded positively to the news, with significant increases in stock indexes following the announcement, as protected imports had previously raised prices and disrupted trade significantly, reported Los Angeles Times and BBC.

Experts suggest that while the reductions mark a step forward, the underlying issues driving the trade tensions remain unresolved, including concerns over intellectual property and the balance of trade. As both nations move forward, the effectiveness of this truce will depend on their ability to engage in constructive dialogue, as emphasized by The New York Times and ABC News.