Following several weeks of heightened economic tensions, the US and China have agreed to substantially reduce the tariffs they had imposed on each other — a decision that signals a de-escalation in one of the world’s most important trade relationships.
Washington had earlier levied punishing tariffs of up to 145% on Chinese goods, prompting fears of prolonged disruption to global trade flows. Now, following a high-profile announcement at the White House, US President Donald Trump has proclaimed a “total reset” in US–China relations. Under the new agreement, both countries will ease tariffs for 90 days. Trump further stated that he does not anticipate the return of the 145% tariff rates at a later point.
