The United States and China have agreed to dial down their trade war, with both sides committing to cut tariffs and suspend new ones for a temporary 90-day window, according to a Reuters report quoting US Treasury Secretary Scott Bessent.
Following high-level negotiations with Chinese officials in Geneva, Bessent said the two countries had struck a deal to reduce reciprocal tariffs—by what he described as a surprising 115%. While the figure raised eyebrows, details suggest it includes tariff suspensions, removals, and adjustments that add up to the dramatic percentage
As per Chinese commerce ministry estimates, Beijing will now fix its tariff rate on most American goods at 10%. In addition, it has decided to suspend an extra 24% levy and completely drop a further 91% worth of additional duties—at least for the next 90 days.
This temporary rollback is seen as a mutual gesture to cool tempers and re-engage in broader trade talks. The tariff detente comes after months of tit-for-tat escalation, with Washington earlier imposing as much as 145% tariffs on Chinese imports—moves that had rippled across global supply chains.
While not directly involved, India has found itself in an interesting spot during this tug-of-war. With US buyers avoiding pricey Chinese products, many have started exploring Indian suppliers for everything from textiles to electronics. Though the full extent of this diversion is still uncertain, early trends suggest a tilt towards India may have already begun.
Moreover, the prolonged trade tensions have indirectly nudged India closer to Western economies, who are looking for alternative sourcing destinations. The pause in hostilities might slow this momentum, or perhaps, deepen trust in India as a stable trade partner—something many in Delhi will be watching closely
Despite the breakthrough, nothing is final yet. This isn’t a full peace treaty—it’s more of a ceasefire. The 90-day period gives both sides time to reassess their positions, possibly renegotiate terms, or prepare for the next round of disputes.
Analysts remain cautious. Many point out that similar cooling-off periods in the past have ended with an even harder reset. Whether this time will be any different is still up in the air