United States: In a significant turn of events, Washington and Beijing declared a 90-day moratorium on the bulk of their mutual tariffs, sparking a global market rally and fanning hopes that their simmering economic rift might begin to cool.

According to a rare joint proclamation, US levies on Chinese goods will ease from an eye-watering 145 percent to 30 percent, while China’s counter-duties on American imports will drop from a staggering 125 percent to a milder 10 percent.

This breakthrough followed face-to-face deliberations in Geneva — a pivotal diplomatic crossroads — marking the first in-person dialogue between representatives since President Donald Trump unleashed a volley of global tariffs on April 2.

The US, long bearing the heaviest trade deficit with China, has persistently accused the Asian powerhouse of exploiting unfair advantages. Trump’s administration labeled China’s trade conduct as predatory. Beijing, in return, retaliated with a series of harsh countermeasures, entrenching both nations in a hostile economic tit-for-tat, according to NBC News.

“We’ve had forthright and fruitful discussions,” noted US Trade Representative Jamieson Greer in a Geneva presser, underlining the constructive intent shown by Chinese negotiators.

Treasury Secretary Scott Bessent described the tariff barrage as “tantamount to an embargo” — a situation both parties sought to sidestep. “We’re not anti-trade. What we seek is equilibrium — a reset toward fairer engagement,” Bessent added.

He pushed back against critics who questioned the aggressive start, arguing that conventional channels had yielded minimal progress. “The old approach was a cul-de-sac. This was a necessary jolt.”

China’s Ministry of Commerce hailed the accord as a “meaningful milestone” that could lay the groundwork for deeper synergy and reduced discord. A ministry spokesperson expressed optimism that the US would stay the course and rectify its “one-sided tariff doctrine.”

News of the ceasefire sent Wall Street surging. The Dow spiked 2.1 percent, the S&P 500 climbed 2.8 percent, and the Nasdaq surged by 3.8 percent in early trading. European markets followed suit, while Hong Kong’s Hang Seng Index leapt over 3 percent before mainland Chinese exchanges closed ahead of the announcement.

Markets across Asia rode a wave of cautious optimism, buoyed not only by trade hopes but also by signs of quiet between India and Pakistan following their recent clashes.

Both nations pledged to set up an ongoing framework for dialogue, possibly alternating venues between their own soil and a neutral third party. Greer and Bessent will continue to represent the US, while China will be led by Vice Premier He Lifeng in future economic parleys, as per NBC News.

However, not all tariffs have been lifted. Duties linked to earlier Trump-era actions and those related to China’s role in global fentanyl trafficking remain active. Greer signaled that fentanyl-related discussions are advancing positively, but on a separate diplomatic track.

Container shipments from China to the US have plunged noticeably since April, illustrating the real-world toll of the trade crossfire. Logistics titan AP Moller-Maersk deemed the deal “a promising pivot,” hopeful it might blossom into a lasting peace that brings clarity for international trade clients.

Tianchen Xu, an economist at the Economist Intelligence Unit, noted the relief for small and mid-tier exporters, especially in China, who’ve been hemorrhaging orders amid the uncertainty. “This truce is life-saving for these players,” he stated.

US importers, meanwhile, are set to dodge skyrocketing costs, a reprieve that could ripple into stronger domestic growth and job stability. “This isn’t just a fiscal maneuver — it’s an economic lifeline,” Xu added.

Wang Wen, dean at the Chongyang Institute for Financial Studies, praised the accord as a rare diplomatic spark that “rekindled global optimism.” Still, both experts cautioned that the underlying friction is far from extinguished, according to reports by NBC News.

“We are at the foothills of a much steeper climb,” Wang said. “The resilience and strategic wisdom of policymakers on both sides will now face a stern trial.”