After intense Geneva talks, Washington and Beijing agree to drastically reduce punitive tariffs for an initial 90-day period
A breath of fresh air for global markets
The United States and China have struck a temporary deal that could reshape the balance of international trade. In a joint statement following two intense days of negotiations in Geneva, the two economic superpowers announced a 115% cut in punitive tariffs for a 90-day trial period.
This breathing space marks a concrete step toward rapprochement after years of tariff wars and trade friction.
What the deal entails
By May 14th, both countries will implement the following:
- The US will cut tariffs on Chinese products from 145% to 30%
- China will reduce tariffs on American goods from 125% to 10%
The reciprocal gesture, though asymmetric, aims to ease pressure on key sectors such as tech, agriculture, and automotive.
A fragile yet meaningful step
The compromise is not permanent, but gives businesses and investors a 90-day breather. The agreement may be renewed or renegotiated based on results.
The trade war is far from over, but the message is clear: dialogue is back on the table.
Implications for Italy and Europe
A relaxation of tensions could benefit European exports, particularly for Italy, which may gain from smoother global trade flows—especially in mechanical engineering, fashion, and wine sectors.
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