Unexpected U.S.–China Agreement Calms Global Markets

Global stocks have risen after the U.S. and China agreed to reduce tariffs on each other’s goods for ninety days, in a major de-escalation of their trade war.

U.S. tariffs on Chinese imports will drop from 145% to 30%, while Chinese tariffs on U.S. goods will fall from 125% to 10%, reports the BBC, CE Report quotes Kosova Press.

This is a bigger reduction than expected, notes the BBC correspondent — though 30% remains a high tariff.

Thirteen hours earlier, it was reported that senior officials from the U.S. administration stated they had reached a trade agreement with China after two days of negotiations in Geneva.

The White House announced a "trade agreement with China" in a statement today but did not disclose details.

The agreement was reached faster than most observers expected, as Donald Trump's 145% tariffs on Chinese imports had practically halted $600 billion in annual trade between the world's two largest economies.