The prospects for a major breakthrough still appear slight, but even a small drop in tariffs — particularly if taken simultaneously — could help restore some confidence.

In a surprising turn of events, the United States and China have agreed to significantly reduce tariffs following a pivotal meeting in Geneva. This agreement, announced on a Monday, has exceeded Wall Street's expectations and initiated a 90-day 'cooling-off' period for further negotiations.

The U.S. and China agreed to a 90-day pause in their trade conflict. Here's what China's tariffs on the U.S. looked like in 2024.

“A very good meeting today with China, in Switzerland. Many things discussed ... the president wrote on Truth Social. Trump floated an 80% tariff rate with China on Friday, according to reports. Gripas Yuri/ABACA/Shutterstock Trump floated lowering ...

Trade discussions between Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng ended after a weekend of prolonged negotiations.

The president's social media post could signal movement that would ease fears among consumers, businesses and the markets.

The move by the Trump administration to lower tariffs on goods from China to 30% from 120%, still offers limited reprieve for US small businesses, who remain cautious as tariffs are still sky high by historical levels and are also pressuring profits.

China and the United States have agreed to significant cuts in the tariffs they imposed on each other in recent months after talks over the weekend in Switzerland. The two nations have also agreed to continue to negotiations. Here’s a look at the deal and what it means for trade and the U.S. economy:

China’s President Xi Jinping said President Trump’s trade policy would backfire, a day after U.S. and Chinese negotiators signed a deal to lower mounting tariffs. “There are no winners in tariff wars or trade wars.