US and China Declare Trade Truce, Suspending Tariffs

In a major step toward easing years of economic strain, the United States and China have agreed to suspend a wide range of tariffs, effectively declaring a temporary truce in their long-running trade war.

Officials from both governments confirmed late Sunday that the deal will pause new tariff measures and scale back existing ones, giving negotiators time to pursue a broader agreement on trade and technology.

Tariffs Rolled Back on Both Sides

Under the agreement, the United States will cut duties on Chinese imports from rates that had reached as high as 145%, down to roughly 30%, according to The Washington Post.
China will also reduce its retaliatory tariffs on American products from 125% to around 10%, easing pressure on U.S. exporters who have struggled to compete in the Chinese market.

The truce includes a 90-day freeze on any new tariffs or export controls. During this period, both sides will reopen formal negotiations covering issues such as market access, intellectual property protections, and technology transfers.

Beijing has also agreed to suspend new export restrictions on rare earth minerals, vital to the production of semiconductors, electric vehicles, and defense systems, a move seen as crucial for global manufacturing.

Economic Relief and Market Reaction

The announcement triggered an immediate reaction across global markets. Stocks in Asia and the U.S. rose modestly on Monday, while the Chinese yuan strengthened against the dollar.

Analysts say the truce could ease pressure on global supply chains, reduce import costs, and help cool inflation that has affected both economies since tariffs began to climb in 2018.

“The agreement may not resolve everything, but it stabilizes the situation,” said a senior trade economist in London. “It signals that both countries recognize the cost of continued escalation.”

Winners and Losers

Agriculture and technology are expected to benefit most from the pause. China’s pledge to resume large-scale purchases of U.S. soybeans and pork could provide billions in relief to American farmers hit by years of tariff retaliation.

In return, U.S. companies that rely on Chinese manufacturing are likely to see import costs fall though experts caution that supply-chain disruptions won’t disappear overnight.

“This truce buys time,” said one policy analyst in Washington. “It doesn’t end the trade war, it just moves the fight to the negotiation table.”

Cautious Optimism in Washington and Beijing

The White House described the move as “an important step toward rebuilding trust.”
Chinese officials called the agreement “a foundation for future stability,” while state media in Beijing urged patience, noting that “structural issues will take time to resolve.”

Despite the positive tone, both sides have downplayed expectations for a rapid breakthrough. Key disputes including government subsidies, technology transfer rules, and restrictions on high-tech exports remain unresolved.

Global Response

World leaders have welcomed the development. The European Union said the decision “reduces uncertainty at a critical moment for the global economy,” while Japan and South Korea praised it as a “stabilizing act.”

Financial experts warn, however, that past truces have been short-lived. “We’ve seen similar pauses before,” said a market strategist at HSBC. “The difference this time will depend on whether both sides can maintain restraint beyond the 90-day deadline.”

What Happens Next

Negotiators from both countries are scheduled to meet in Washington next month to begin drafting a longer-term trade framework. The talks will likely focus on structural reforms, intellectual property protections, and export control policies.

If progress is made, officials say the truce could be extended into a more permanent agreement. But if talks stall, tariffs could return and with them, renewed economic uncertainty.

A Fragile but Important Step

For now, the deal offers a rare moment of calm between two economic superpowers whose rivalry has shaped global politics for much of the past decade.

Whether it leads to lasting peace or simply delays another round of confrontation will depend on what happens in the weeks ahead.

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