US President Donald Trump has declared a “total reset” in relations with China following a landmark agreement that will see both nations significantly reduce tariffs on each other’s goods for 90 days, signaling a major de-escalation in their years-long trade war.
Speaking to reporters at the White House, Trump expressed optimism about the future of bilateral ties and hinted at an upcoming meeting with Chinese President Xi Jinping. “I don’t think tariffs on China will ever reach the same heights again,” he said.
The deal, which slashes US tariffs on Chinese imports from 145% to 30% and lowers Chinese tariffs on US goods from 125% to 10%, represents a dramatic policy shift. According to White House sources, the agreement is aimed at stabilising economic relations and laying the groundwork for longer-term negotiations.
US financial markets reacted swiftly and positively to the announcement, with indices surging to levels not seen since the beginning of the year. This marks a significant rebound from the market volatility triggered by Trump’s so-called “Liberation Day” tariffs introduced in April.
Business analysts and economists say the scale of the tariff cuts exceeds earlier expectations, though concerns remain about the still-high 30% levy on Chinese goods.
The temporary easing of trade barriers is expected to provide short-term relief for American manufacturers and farmers who have borne the brunt of the trade conflict.
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