A significant turning point in the trade talks between the two economic giants was reached when President Donald Trump declared that China has agreed to fully open its markets to American businesses.
Following high-level talks in Geneva, the deal includes a 90-day tariff reduction phase during which China will reduce its taxes on American imports from 125% to 10% and the United States will reduce its levies on Chinese goods from 145% to 30%. Tariffs on certain goods, like steel, aluminum, and cars, will not change even though the majority of duties would be loosened.
Trump praised the move as a historic change that will provide American businesses more access to the Chinese market, increasing investment, employment, and economic expansion. He underlined that the ruling would give American exporters who have long been harmed by trade restrictions a level playing field.
Both countries want to continue negotiations to reach a more comprehensive and long-term trade agreement, according to Treasury Secretary Scott Bessent, who led the U.S. delegation during the negotiations. Additionally, both parties reaffirmed their resolve to promote more equitable trade relations and refrain from complete economic decoupling.
Financial markets erupted in response to the announcement, with key indices recording significant gains. Although long-term stability will depend on the outcome of future discussions, economists see the action as a step in the right direction toward lowering uncertainty around global trade.