The U.S. and China on Monday jointly announced a 90-day suspension of recently imposed reciprocal tariffs, marking a major economic de-escalation between the two countries. Under the agreement, which takes effect Wednesday, Washington will reduce the effective tariff rate on Chinese imports from 145% to 30%, while Beijing will lower its tariff rate on U.S. goods from 125% to 10%.

The announcement followed two days of high-level talks in Geneva between U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer and Chinese Vice Premier He Lifeng. Both sides agreed to establish a bilateral consultation mechanism to address trade and economic concerns and indicated the suspended tariffs would resume if no meaningful progress is made within the 90-day window.