United States and China Reach Historic Agreement to Drastically Reduce Tariffs

In a landmark development that could reshape the global economic landscape, the United States and China have reached a comprehensive agreement to drastically roll back tariffs imposed during years of trade tensions.

The announcement came after an intense week of negotiations in Geneva, where top trade officials from both countries finalized terms to eliminate or reduce a majority of tariffs on goods valued at hundreds of billions of dollars. The deal is being hailed as the most significant thaw in US-China economic relations since the onset of the trade war in 2018.

“This is not just a rollback of tariffs — it’s a reset of the world’s two largest economies,” said U.S. Treasury Secretary Janet Yellen.

Chinese officials echoed the sentiment, stating the agreement “paves the way for mutual growth, stability, and cooperation in the post-pandemic global economy.”

The deal includes:

• Immediate suspension of new tariffs planned for Q3 2025.

• Gradual reduction of existing tariffs over the next 12 months.

• A bilateral mechanism to resolve future disputes without escalation.

While markets reacted positively—with stocks surging in both Shanghai and New York—critics have raised concerns about enforcement, intellectual property protections, and long-term trade imbalances.

Nonetheless, business leaders and analysts broadly welcomed the agreement, citing it as a critical step toward revitalizing global supply chains and reducing inflationary pressure worldwide.

This move could also ease geopolitical tension