U.S. and China agree to slash reciprocal tariffs in major step toward easing trade war

The U.S. and China said they had agreed to a 90-day pause on most of the tariffs they have imposed on each other since last month.

HONG KONG — The United States and China said Monday that they had agreed to a 90-day pause on most of the tariffs they have imposed on each other since last month, sending stocks soaring amid hopes of an easing trade war between the world's two largest economies.

The combined U.S. tariffs rate on Chinese imports will be cut to 30% from 145%, while China’s levies on U.S. imports will be cut to 10% from 125%, the two countries said in a joint statement.

The early morning announcement came after officials from the two countries met in Geneva over the weekend. It was the first face-to-face talks on the tariffs since President Donald Trump's shock "Liberation Day" announcement last month imposing 84% duties on Chinese imports, which subsequently climbed to 125% — and then to 145% a day later.

The new 30% rate is the sum of the 20% duty imposed imposed during the first weeks of his second term in response to alleged Chinese inaction on fentanyl flows, alongside the 10% across-the-board tariff Trump has imposed on all countries.

Treasury Secretary Scott Bessent in Geneva on Monday.Fabrice Coffrini / AFP via Getty ImagesMarkets surged on the news in early trading Monday as recession fears dissipated, with the S&P 500 climbing 2.6% and the Dow Jones Industrial Average adding more than 1,000 points or about 2.5%. The tech-focused Nasdaq jumped 3.5%.