Bessent hails 'substantial progress' as U.S., China agree to 90-day tariff truce

U.S. and China agree to pause tariff escalation for 90 days, rolling back recent hikes by 115%.
Treasury Secretary Scott Bessent leads negotiations, calling the progress 'substantial' amid market relief.
Analysts remain cautious about long-term resolution as core trade disputes persist.

A Temporary Reprieve in Trade Tensions

The U.S. and China have reached an agreement to pause their recent tariff war for 90 days, with both sides agreeing to reduce previously imposed hikes by 115%. The deal, negotiated by Treasury Secretary Scott Bessent and a high-ranking Chinese delegation in Geneva, brings U.S. tariffs on Chinese goods down to 30% and Chinese tariffs on U.S. exports to 10%. Bessent described the outcome as "substantial progress" after what he termed an "unfortunate escalation" in recent weeks.

The breakthrough follows a rapid series of retaliatory measures, including President Trump's April 2 tariff increase to 34% and a subsequent jump to 145%, met by China's 125% hike. Markets reacted positively to the truce, though analysts warn the relief may be short-lived without further concessions. "This is a tactical pause, not a strategic resolution," said one trade policy expert familiar with the talks. "Supply chains won’t stabilize until businesses see a credible path to lasting de-escalation."

Political and Economic Stakes Remain High

While the Trump administration frames the negotiations as addressing the U.S. trade deficit, Chinese state media has emphasized Beijing's "unwavering" stance on core issues. The 90-day window offers a fragile opportunity to bridge gaps, but industries from agriculture to semiconductors remain exposed to sudden policy shifts.

Bessent, recently confirmed as Treasury Secretary, has emerged as a central figure in the talks. His team declined to comment on specific negotiation timelines but acknowledged "constructive dialogue" with Chinese counterparts. Meanwhile, businesses are recalibrating supply chains amid what one manufacturing lobbyist called "the new normal of whiplash tariffs."