US and China Strike Landmark Trade Deal to Slash Tariffs, Boost Global Markets

Image Source: National Herald

The United States and China have reached a historic trade agreement to reduce reciprocal tariffs, marking a significant step toward ending the prolonged trade war. The deal, announced after high-level negotiations in Geneva, aims to stabilize global markets and ease economic tensions.

Tariff Reductions & Economic Impact

The agreement includes a 115% reduction in reciprocal tariffs, significantly easing trade restrictions.
The US had previously imposed 145% tariffs on Chinese goods, while China retaliated with 125% tariffs on US imports.

Negotiation Process & Diplomatic Breakthrough

Talks were led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, with both sides describing discussions as constructive and productive.
The Swiss government hosted the negotiations, ensuring a neutral ground for diplomatic engagement.

Market Reaction & Investor Sentiment

Global markets responded positively, with US stock futures surging following the announcement.
Analysts predict a boost in trade volumes, benefiting key industries such as technology, manufacturing, and agriculture.

Future Outlook & Policy Adjustments

The agreement includes a 90-day pause on new trade measures, allowing both nations to finalize implementation strategies.
The World Trade Organization (WTO) welcomed the deal, calling it a crucial step toward global economic stability.

Statements from Officials & Next Steps

US Trade Representative Jamieson Greer emphasized that the deal reflects mutual commitment to resolving trade disputes.
China’s Vice Premier He Lifeng described the agreement as an important consensus, reinforcing China’s stance on fair trade practices.

This landmark trade deal signals a major shift in US-China relations, reinforcing global economic cooperation and stability.

Sources: Economic Times, Indian Express, Indian Express, Times of India, MSN