On Monday, President Donald Trump announced that China has agreed to open its markets more to American businesses, a key result of recent trade talks between Washington and Beijing.
Trump described the agreement as one of the most significant outcomes of the discussions, which took place on Saturday. Treasury Secretary Scott Bessent led the negotiations in Geneva, resulting in a 90-day agreement that includes tariff relief for both sides.
During a briefing at the White House, Trump explained that the agreement includes reducing tariffs to 10% for 90 days, although existing tariffs on areas like automobiles, steel, aluminum, and pharmaceuticals remain in place. The goal, he added, is to bring more of the pharmaceutical industry back to the U.S., with signs that this trend is already beginning.
On Sunday, the White House shared details of a potentially historic trade deal with China, marking a significant shift in the economic relationship between the two countries. After months of imposing heavy tariffs, President Trump and China reached an agreement to lower tariffs, halt retaliatory actions, and maintain a baseline U.S. tariff on Chinese goods. The deal also paves the way for future negotiations to increase U.S. access to Chinese markets.
The fact sheet released after the talks in Geneva outlined a 115% tariff reduction, with both nations agreeing to a 90-day period of these lowered tariffs, effective from May 14. This news gave a major boost to the stock market, with the Dow Jones rising by 1,000 points at the market’s opening on Monday.
As part of the agreement, China will eliminate retaliatory tariffs that were imposed on the U.S. since April 2025, and will suspend the 34% tariff on U.S. goods for 90 days. The U.S. will remove additional tariffs placed in early April but will maintain certain tariffs, including those related to fentanyl and national security.
The two countries will continue discussions for a longer-term deal, with a particular focus on the fentanyl crisis in the U.S. and trade practices. The talks may continue alternately in China, the U.S., or another country.