Both countries will scrap most additional duties announced last month and try to work out further policy steps, according to a joint statement

The US and China have agreed to scrap or suspend most of the new trade duties imposed since early April, pending further talks, according to a joint statement released on Monday.

Following two days of talks in Geneva over the weekend, the US and China agreed to roll back all tariff hikes imposed since April 8 by May 14. The US will halt the initial 24% duties introduced by Trump on April 2 for 90 days, while China will do the same with its own 24% tariffs rolled out in response to that measure.

Beijing will also ease non-tariff measures such as export controls on US goods. Both countries will keep in place the baseline 10% tariff on mutual imports, on top of the previously introduced US duties on Chinese goods, and create a consultation mechanism to work out further trade policy steps.

The statement noted that Beijing and Washington recognize "the importance of their bilateral economic and trade relationship to both countries and the global economy" and therefore decided to move "forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect."

Tensions between Washington and Beijing escalated sharply on April 2, when US President Donald Trump imposed sweeping new tariffs on more than 90 countries, including China, citing trade imbalances. Beijing responded with its own tariff hikes on US goods. The move triggered a tit-for-tat standoff that saw final US duties climb to 145% and Chinese tariffs to 125%. The dispute rattled global markets, driving volatility across equities and commodities.

US Treasury Secretary Scott Bessent earlier told reporters that the talks in Geneva were "productive." Trade representative Jamieson Greer said the sides were able to come to agreement "quickly," which "reflects that perhaps the differences were not so large as maybe thought." China's chief negotiator, Vice Commerce Minister Li Chenggang, said that discussions were "honest, in-depth, and constructive" and based on "mutual respect, equality, and mutual benefit."

Commenting on the talks in Geneva, Trump wrote on Truth Social that they were "very good" and signaled a "total reset" in US-China relations.

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The US stock market quickly responded to Sunday's announcement, with Dow futures rising 1.1%, S&P 500 futures up 1.5%, and the Nasdaq Composite gaining 2.1%. Chinese stocks also rallied, with the CSI 300 up 0.6% at midday, the Shanghai Composite climbing 0.4%, and Hong Kong's Hang Seng Index rising 0.9%.

(RT.com)