The United States and China have agreed to drastically roll back tariffs on each other’s goods for an initial 90-day period, in a surprise breakthrough that has de-escalated a punishing trade war and buoyed global markets.
The announcement tonight, which was made in a joint statement, comes after a weekend of marathon trade negotiations in Geneva, Switzerland, by officials from the world’s two largest economies, during which both sides touted “substantial progress”.
Both sides recognised “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship”, they said in the statement.
Speaking at a press conference in Geneva, Bessent said: “The consensus from both delegations is neither side wants to be decoupled.”
“What has occurred with these very high tariffs… was an equivalent of an embargo, and neither side wants that,” he said.
“We do want trade. We want more balance in trade. And I think both sides are committed to achieving that.”
Global investors are cheering a thaw in the trade war sparked by Trump’s massive tariffs, which have roiled financial markets, disrupted supply chains and stoked recession fears.
Dow Jones futures jumped more than 2 per cent, while S&P 500 futures rose nearly 3 per cent, and the tech-heavy Nasdaq Composite futures went up more than 3.5 per cent during Asian afternoon trading.
Asian markets were higher too, with Hong Kong’s Hang Seng index gaining more than 3 per cent.
