US and China Sign 90-Day Tariff Rollback Agreement
Why in News?
- In a significant development, the United States and China have agreed to a 90-day rollback of tariffs, marking a temporary truce in their ongoing trade tensions. This agreement, announced on May 13, 2025, follows high-level trade talks in Geneva and aims to ease economic strains and foster further negotiations.
Important Key Points:
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Tariff Reductions:
Effective May 14, 2025, the U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on U.S. goods from 125% to 10%, both for a 90-day period. -
Continued Dialogue:
The agreement includes provisions for ongoing discussions on economic and trade relations, with designated representatives from both nations engaging in consultations. -
Market Impact:
The announcement has positively influenced global markets, with stock indices experiencing significant gains amid hopes for a de-escalation of trade tensions.
