The United States and China have agreed to temporarily suspend most tariffs, slashing reciprocal rates from 125% to 10%. U.S. duties of 20% on fentanyl-linked imports will remain in effect.
The deal follows a weekend of high-level negotiations between U.S. and Chinese trade officials in Switzerland. U.S. Treasury Secretary Scott Bessent said the talks, held in Lake Geneva, were constructive and led to a “very positive process.” At a press conference, Bessent announced the two nations had agreed to a 90-day pause and to lower reciprocal tariffs by 115%. The suspension is set to begin on Wednesday, with both sides continuing discussions on broader trade and economic policies.
Markets responded swiftly to the announcement. Nasdaq futures surged 3.7%, S&P 500 futures rose 2.7%, and the Dow Jones Industrial Average jumped more than 840 points, or 2%. The ICE U.S. Dollar Index also climbed 1.1% to 101.46, reflecting growing investor confidence.
