U.S. and China roll back Tariffs

A China Tariff War Ceasefire Not a Surrender

After a weekend of high-level negotiations in Geneva, the United States and China agreed to a dramatic temporary rollback of tariffs.

Both sides will suspend the bulk of the duties imposed since April 2’s “Liberation Day,” reducing effective U.S. tariffs on Chinese goods from around 145 percent to 30 percent. China, in turn, drops its retaliatory levies to 10 percent, the same baseline Trump imposed on imports from other nations earlier this year.

The agreement—announced jointly in carefully coordinated statements—buys both sides 90 days to negotiate a broader resolution. But in the meantime, it delivers a meaningful reprieve for global markets.

Stocks and the dollar surged, while Treasury yields rose on expectations that the Fed will now hold off on cutting rates. Markets have now priced out almost 10 basis points of easing, with a July rate cut looking increasingly unlikely. [Breitbart Business Digest]