US And China Agree On A Tariff Pause
The US and China agreed on an “initial, 90-day tariff pause” after a weekend of trade talks in Geneva, Switzerland. The tariff pause comes after weeks of impasse and escalating economic tensions between the two superpowers. In a joint statement, US and China committed to de-escalation using language that signifies a step in the right direction.
US and China Issue Joint Statement
Both countries tacitly acknowledged the ongoing economic turmoil induced by the tariff war. Their statement: “Recognizes the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship. Reflecting on their recent discussions and believing that continued discussions have the potential to address the concerns of each side in their economic and trade relationship; and moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”
During a press conference held in Geneva, US Treasury Secretary Scott Bessent noted that the “US and China will substantially move down tariff levels to 115%.” Citing “robust discussions” where both sides “showed great respect,” Bessent said both sides had an interest in “balanced trade.”
This move comes after six weeks of economic uncertainty following President Donald Trump’s reciprocal tariff announcement on “Liberation Day” on April 2, 2025. The short-term panic in the stock market resulted in the loss of billions if not trillions of dollars. The teetering came to a halt last week, when markets recuperated losses in anticipation of a trade agreement.
US China Tariff Tussle Percolates
Experts predicted largescale economic devastation due to the tussle between the giants, and the resulting chaos was immediately evident. They noted that the tariff problem would impact most industries from fashion to electronics to even groceries. The quasi-tariff “withdrawal” also comes at a time when new graduates were expected to grapple with precariousness in the job market.
Trump’s Trip To The Middle East
President Trump is expected to tout this “victory” during his oncoming trip to the middle east where the US anticipates $600 billion in investments. While the trip has already raised ethical scrutiny, things look smooth for the economy, at least for the time being.
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