Trump Admin and China Agree to Slash Tariffs in Shocking Trade War Truce

The Trump administration and China have agreed to a 90-day pause in their bruising trade war on Monday, a sudden thaw in relations that slashes reciprocal tariffs by 115% in a deal brokered during high-stakes weekend talks in Switzerland.

The move was confirmed by Treasury Secretary Scott Bessent, who told reporters: “The consensus from both delegations this weekend was neither side wants a decoupling.”

Bessent also praised Chinese officials for engaging seriously on fentanyl, saying it was “the first time the Chinese side understood the magnitude of what is happening in the US.”

The truce peels back some of the harshest duties imposed under President Donald Trump’s April tariff hike, which sent U.S. levies on Chinese goods soaring to 125%. China hit back with countermeasures and restricted key mineral exports, rattling global supply chains. Under the new agreement, Chinese tariffs drop to 10%, while U.S. tariffs fall to 30% — though the 20% fentanyl-related tariff remains untouched.

China’s commerce ministry called the move a win for “producers and consumers in both countries,” urging Washington to “completely correct” its unilateral trade posture.

Markets rallied in response to the news. China’s yuan surged to a six-month high, while European indexes climbed across the board.