The Office of the United States Trade Representative and China’s Ministry of Commerce have jointly announced a 90-day mutual reduction in tariffs amounting to 115%, signaling a temporary thaw in the years-long economic tensions between the two powers, as confirmed in the official White House fact sheet.
According to analysis by the Geneva-based World Trade Organization observers, this unprecedented move follows intense negotiations in Switzerland, where both sides emphasized the economic burden the prolonged trade war has placed on businesses, consumers, and global supply chains.
Economists view the deal as a short-term but significant pause that could help ease inflationary pressures in the U.S. while providing Chinese exporters a crucial breathing space amid domestic demand challenges.
Although this reduction doesn’t mark a full resolution of the trade war, it opens a diplomatic window for longer-term restructuring talks on subsidies, intellectual property, and market access—areas both governments admitted were “under review” but still contentious.
While the pause was welcomed by markets and multinational corporations, analysts warn through the Peterson Institute for International Economics that without structural reforms, this ceasefire might only delay further confrontations unless both nations use the 90 days to address foundational disputes in a more sustainable and less adversarial manner.
