US-China agree to trade deal in Geneva; US to lower tariff on China goods from 145% to 30%

US-China trade deal: The US and China have agreed to put a 90-day halt on a part of their existing tariffs while working towards lowering existing tariffs, announced US Treasury Secretary Scott Bessent.

"An agreement has been reached with China on a 90-day pause, and to substantially move down tariff levels," he stated. 

He added that the tariff cuts will be reciprocal, with each of the economy lowering rates by 115 per cent.

And as part of this 90-day pause, the US would reduce the tariff levy of as much as 145 per cent on China imports to 30 per cent. Following, China will also cut tariffs on American imports from 125 per cent to 10 per cent.

"We have reached an agreement on a 90-day pause and substantially moved down the tariff levels." He called the talks with Chinese officials as productive and also asserted that "both sides showed great respect," Bessent said.

The US-China trade talks took off over the weekend and it was announced that the deal has been reached with official announcement on Monday. 

A joint statement issued by US and China read, "The parties commit to take the following actions by May 14, 2025: The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 per cent on those articles pursuant to the terms of said Order..."

Global markets react to US-China trade deal

On the move, US index futures also showed quick exuberance with Nasdaq futures moving higher up to 4 per cent, while European markets also traded strong.

Also, Indian equities recorded their best one-day gains in 4 years, with Nifty ending over 900 points, close to 25,000 levels.