US and China take a step back from sky-high tariffs, agree to pause for 90 days

GENEVA AP U S and Chinese personnel revealed Monday they had reached a deal to roll back most of of their latest tariffs and call a -day truce in their contract war for more talks on resolving their contract disputes Stock markets rose sharply as the globe s two major economic powers took a step back from a clash that has unsettled the global economic system U S Pact Representative Jamieson Greer declared the U S agreed to drop its tariff rate on Chinese goods by percentage points to while China agreed to lower its rate on U S goods by the same amount to Greer and Treasury Secretary Scott Bessent disclosed the tariff reductions at a news conference in Geneva The two authorities struck a positive tone as they revealed the two sides had set up consultations to continue discussing their contract issues Bessent noted at the news briefing after two days of talks that the high tariff levels would have amounted to a complete blockage of each sides goods an outcome neither side wants The consensus from both delegations this weekend is neither side wants a decoupling Bessent noted And what had occurred with these very high tariff was an embargo the equivalent of an embargo And neither side wants that We do want agreement We want more balanced commerce And I think that both sides are committed to achieving that China s Commerce Ministry called the agreement an critical step for the resolution of the two countries differences and explained it lays the foundation for further cooperation This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world a ministry announcement declared It added that China hopes the U S will stop the erroneous practice of unilateral tariff hikes and work with China to safeguard the advance of their economic and transaction relations injecting more certainty and stability into the global economic system The full impact on the complicated tariffs and other contract penalties enacted by Washington and Beijing remains unclear And much depends on whether they will find strategies to bridge longstanding differences during the -day suspension But as transaction envoys from the world s two biggest economies blinked finding means to pull back from potentially massive disruptions to world pact and their own markets investors rejoiced Futures for the S P jumped and for the Dow Jones Industrial Average was up Oil prices surged more than a barrel and the U S dollar gained against the euro and the Japanese yen Jens Eskelund president of the European Union Chamber of Commerce in China welcomed the news but expressed caution The tariffs only were suspended for days and there is great uncertainty over what lies ahead he commented in a report Businesses need predictability to maintain normal operations and make stake decisions The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences and avoid taking measures that will disrupt global exchange and end in collateral damage for those caught in the cross-fire Eskelund declared Trump last month raised U S tariffs on China to a combined and China retaliated by hitting American imports with a levy Tariffs that high essentially amount to the two countries boycotting each other s products disrupting arrangement that last year topped billion The announcement by the U S and China sent shares surging with U S futures jumping more than Hong Kong s Hang Seng index surged nearly and benchmarks in Germany and France were both up The Trump administration has imposed tariffs on countries worldwide but its fight with China has been the the bulk intense Trump s import taxes on goods from China include a charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States The remaining involve a dispute dating back to Trump s first term and comes atop tariffs he levied on China then which means the total tariffs on various Chinese goods can exceed GENEVA AP U S and Chinese representatives disclosed Monday they had reached a deal to roll back greater part of their newest tariffs and call a -day truce in their agreement war for more talks on resolving their exchange disputes Stock markets rose sharply as the globe s two major economic powers took a step back from a clash that has unsettled the global financial system U S Pact Representative Jamieson Greer stated the U S agreed to drop its tariff rate on Chinese goods by percentage points to while China agreed to lower its rate on U S goods by the same amount to Greer and Treasury Secretary Scott Bessent revealed the tariff reductions at a news conference in Geneva The two administrators struck a positive tone as they declared the two sides had set up consultations to continue discussing their exchange issues Bessent stated at the news briefing after two days of talks that the high tariff levels would have amounted to a complete blockage of each sides goods an outcome neither side wants The consensus from both delegations this weekend is neither side wants a decoupling Bessent mentioned And what had occurred with these very high tariff was an embargo the equivalent of an embargo And neither side wants that We do want business We want more balanced pact And I think that both sides are committed to achieving that China s Commerce Ministry called the agreement an fundamental step for the resolution of the two countries differences and disclosed it lays the foundation for further cooperation This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world a ministry message disclosed It added that China hopes the U S will stop the erroneous practice of unilateral tariff hikes and work with China to safeguard the advance of their economic and exchange relations injecting more certainty and stability into the global financial sector The full impact on the complicated tariffs and other transaction penalties enacted by Washington and Beijing remains unclear And much depends on whether they will find options to bridge longstanding differences during the -day suspension But as exchange envoys from the world s two biggest economies blinked finding means to pull back from potentially massive disruptions to world deal and their own markets investors rejoiced Futures for the S P jumped and for the Dow Jones Industrial Average was up Oil prices surged more than a barrel and the U S dollar gained against the euro and the Japanese yen Jens Eskelund president of the European Union Chamber of Commerce in China welcomed the news but expressed caution The tariffs only were suspended for days and there is great uncertainty over what lies ahead he mentioned in a declaration Businesses need predictability to maintain normal operations and make resources decisions The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences and avoid taking measures that will disrupt global bargain and development in collateral damage for those caught in the cross-fire Eskelund noted Trump last month raised U S tariffs on China to a combined and China retaliated by hitting American imports with a levy Tariffs that high essentially amount to the two countries boycotting each other s products disrupting arrangement that last year topped billion The announcement by the U S and China sent shares surging with U S futures jumping more than Hong Kong s Hang Seng index surged nearly and benchmarks in Germany and France were both up The Trump administration has imposed tariffs on countries worldwide but its fight with China has been the majority intense Trump s import taxes on goods from China include a charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States The remaining involve a dispute dating back to Trump s first term and comes atop tariffs he levied on China then which means the total tariffs on various Chinese goods can exceed