Wed May 14 14:04:39 UTC 2025: **US and China Declare 90-Day Trade Truce, Both Claim Victory**

**Geneva, Switzerland** – After months of escalating trade tensions, the United States and China have agreed to a 90-day ceasefire, slashing tariffs in a move that surprised many analysts. Both sides are claiming the upper hand in the deal, which comes after two days of high-level talks in Geneva.

The agreement will see US tariffs on Chinese goods fall to 30 percent, while China’s tariffs on US goods will drop to 10 percent. This marks a significant de-escalation from the peak of the trade war, where tariffs had reached 145 percent and 125 percent respectively. Stock markets reacted positively to the news, with the Nasdaq Composite climbing 4.3 percent on Monday.

While the truce brings immediate relief, key questions remain about the long-term implications. Both countries acknowledged the importance of a “sustainable, long-term, and mutually beneficial economic and trade relationship” and have agreed to continue discussions. China has also pledged to suspend non-tariff measures against the US.

US Treasury Secretary Scott Bessent emphasized the agreement was not a “generalized decoupling,” but noted a strategic decoupling of items deemed vital to national security, such as semiconductors and medicine. President Trump hailed the negotiations as a “great trade deal” and claimed a “total reset” with Beijing, while Chinese officials lauded the agreement as a “great victory for China.”

However, the deal does not address core US concerns, such as China’s large trade surplus and exchange rate policy. Some analysts argue that the US conceded more than China, with one expert suggesting the US economy is currently more reliant on China than vice versa. Concerns also remain about potential future “purchase agreements” reminiscent of the Phase One deal, which ultimately fell short of its targets and led to job losses in the US.

The 90-day truce will be subject to ongoing reviews. While the tariff suspension brings a temporary reprieve, the long-term trajectory of US-China trade relations remains uncertain.

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