The U.S. and China agreed to a 90-day pause and significant tariff reductions, marking progress in trade talks. Despite economic warnings, Trump continues his aggressive trade stance, causing market instability and prompting new trade deals like the one with the UK.

The United States and China have agreed to a substantial reduction in tariffs over the next 90 days, according to top U.S. officials on Monday.

This development follows President Donald Trump's recent comments suggesting that trade negotiations with Beijing were progressing positively.

U.S. Treasury Secretary Scott Bessent stated, “We have reached an agreement on a 90-day pause,” explaining that “both sides will move their tariffs down” by 115%.

He added that both countries share an interest in balanced trade and that the U.S. remains committed to advancing toward that goal.

Meanwhile, Beijing reported that “substantial progress” had been made in trade discussions with Washington.

The tariffs imposed by the Trump administration on Chinese goods had prompted retaliatory measures from Beijing, which contributed to significant price increases for basic goods across the United States.

Following the announcement, the U.S. dollar, which had been declining since Trump’s second term began in January, experienced a modest recovery against the yen and the euro.

Economists had previously warned of the harmful effects these tariff hikes could have on average Americans. Nevertheless, President Trump has continued to pursue his aggressive trade policies.

These tariffs have affected not only strategic rivals like China but also traditional allies, leading to billions of dollars in economic losses for the U.S. and triggering volatility in stock markets.

In the wake of the tariff measures, the Trump administration has intensified efforts to negotiate new trade agreements with key partners, including a recent deal with the United Kingdom.