US Treasury Secretary, Scott Bessent

China and the United States have agreed to suspend key tariffs and resume trade negotiations in a major step toward easing tensions in their long-running economic standoff.

In a joint statement released Monday after two days of talks in Geneva, both sides described the negotiations as “positive” and committed to continued dialogue “in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”

The breakthrough follows weeks of escalating tariffs triggered by former President Donald Trump’s protectionist trade policies, which sent shockwaves through global markets. News of the agreement sparked a rally across stock exchanges in Hong Kong, the U.S., and Europe.

Under the deal, the U.S. will suspend its additional ad valorem duties by 24% for an initial 90-day period, maintaining a reduced 10% tariff rate. China will mirror the concession, lowering its tariffs on U.S. imports while retaining its own 10% base rate. Washington also agreed to roll back tariffs imposed by two executive orders from April, affecting goods from China, Hong Kong, and Macau. In response, Beijing will suspend retaliatory tariffs and other non-tariff countermeasures.

Both countries also announced the creation of a formal mechanism to manage ongoing trade discussions. China’s Vice Premier He Lifeng will lead talks for Beijing, while U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will represent Washington. Meetings will rotate between China, the U.S., and potentially third countries.

Speaking in Geneva, Bessent said the discussions were marked by “great respect” and that both sides agreed tariffs had reached damaging levels.

“Neither side wants to be decoupled,” Bessent stated, calling the steep tariffs “the equivalent of an embargo.”

This deal marks the most significant thaw in U.S.-China trade relations since the onset of the tariff war. It also comes on the heels of a similar U.S. agreement with the United Kingdom, signaling a broader pivot in Washington’s global trade posture.