Mon May 12 08:02:29 UTC 2025: ## US and China Agree to 90-Day Tariff Truce
**Geneva, Switzerland –** In a significant development, the United States and China announced a 90-day pause on escalating tariffs, effectively easing tensions in their protracted trade war. The agreement, reached after weekend talks in Geneva between senior economic officials, will see tariffs reduced from exorbitant levels to a flat 10%.
US Treasury Secretary Scott Bessent stated that both countries successfully represented their national interests, emphasizing a shared goal of balanced trade. The deal follows a period of escalating tariffs under the Trump administration, with duties on Chinese goods reaching 145% and retaliatory measures from China impacting US access to rare earth elements.
The trade war, impacting nearly $600 billion in bilateral trade, had severely disrupted global supply chains and fueled fears of a global recession. The announcement of the tariff truce spurred positive reactions in financial markets, with Wall Street futures rising and the dollar strengthening. The 90-day pause offers a window of opportunity for both nations to negotiate a more permanent solution and potentially avert a wider economic downturn.
First Piper 