U.S. and China agree to temporary tariff rollback after talks in Switzerland
The United States and China have agreed to sharply reduce tariffs for 90 days, easing a trade war that had rattled markets and businesses on both sides.
BBC News reported that the deal lowers U.S. tariffs on most Chinese goods from 145% to 30% and cuts China's retaliatory tariffs on U.S. goods from 125% to 10%. The agreement followed weekend talks in Switzerland and was described by President Donald Trump as a "total reset" in trade terms. Some of the changes are temporary rather than permanent, and both sides kept other levies in place.
The move mattered immediately in financial markets. Shares rose after the announcement, with the S&P 500, the Dow and the Nasdaq all posting strong gains. Shipping stocks also moved higher, and the BBC said companies in the U.S., Europe and Hong Kong welcomed the de-escalation. The reaction showed how tightly global markets had been wired into the tariff standoff.
The agreement still leaves a large amount unresolved. Trump said the tariffs could rise again in three months if no further progress is made, although he did not expect them to return to the previous peak. The United States kept in place an extra 20% tariff tied to fentanyl pressure, while China agreed to suspend or remove non-tariff measures against the U.S. Pre-existing sector tariffs on items such as steel and cars were not lifted.
The BBC account also showed the strain that had built before the thaw. U.S. ports had reported fewer ships from China, factory output in China had slowed and some firms were laying off workers as orders dried up. For retailers and exporters, even a short pause in escalation can matter because it changes planning, inventory and pricing decisions almost immediately.
The political message is as important as the tariff figures. Both governments were signaling a willingness to step back from a hard decoupling, but without giving up leverage. That makes the deal less a settlement than a managed pause, one designed to buy time, reassure markets and keep the possibility of a fuller agreement alive.
For companies caught in the middle, the timing may matter more than the headline rate. A 90-day window gives shippers, retailers and manufacturers just enough time to book cargo, renegotiate prices and delay the worst-case assumptions that had been building since January. That helps explain the market reaction. Still, the temporary nature of the reduction means neither side has surrendered the ability to escalate again. Businesses are left with a calmer quarter, not a permanent framework.
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