The United States and China have agreed to sharply reduce reciprocal tariffs as part of a 90-day pause in their trade war, officials announced on Monday after high-level talks in Geneva.

US Treasury Secretary Scott Bessent said tariffs would drop by more than 100 percentage points to 10%, marking a major de-escalation in a conflict that has rattled global markets and disrupted trade flows worth nearly $600 billion.

“Both countries represented their national interest very well,” Bessent said, adding that the US remains committed to achieving balanced trade.

This was the first in-person meeting between senior US and Chinese economic officials since President Donald Trump returned to office and reignited trade tensions by sharply increasing tariffs, pushing the total US levy on Chinese goods to 145%. China responded with rare earth export restrictions and 125% tariffs on US imports.

US Trade Representative Jamieson Greer joined Bessent in hailing the Geneva talks as productive. The temporary tariff rollback is expected to ease pressure on global supply chains and may calm fears of stagflation that had emerged due to the prolonged trade standoff.

Financial markets reacted positively, with Wall Street futures rising and the US dollar strengthening against safe-haven currencies, reflecting optimism that a broader deal may follow.