By Brendan Scanland
WASHINGTON, D.C. – Over the weekend, the United States and China announced a temporary deal that will drastically reduce tariffs between the two economic powerhouses.
Following weekend talks in Switzerland, signs emerged that the heated trade war between the two nations may be cooling.
“Yesterday, we achieved a total reset with China,” said President Donald Trump on Monday.
Under the new agreement, both countries will temporarily cut tariffs they had imposed on each other after April 2 by 115%. U.S. tariffs on Chinese goods will drop from 145% to 30%, while China’s tariffs on American goods will fall from 125% to 10%.
The announcement triggered relief on Wall Street Monday: the S&P 500 rose 3.26%, the DOW up 2.8% and the NASDAQ climbed more than 4.3%.
The deal comes as both nations look to ease trade tensions and restore confidence among global investors. News of the deal broke as the 2025 SelectUSA Investment Summit kicked off just outside Washington. According to organizers, it’s the highest-profile U.S. event dedicated to promoting foreign direct investment.
“For American consumers and for the supply chain in the U.S., that is a positive sign,” said David Briel with the Pennsylvania Department of Community and Economic Development (DCED), about the agreement with China.
Still, Briel noted it’s too early to assess the full impact of the tariffs and how much damage has already been done.
“The goal of the tariffs, again, is to drive foreign direct investment. We’re still waiting to see the effects of that. In some cases it will succeed. For others, it will create challenges for some other industries, perhaps,” he said.
Some officials at this year’s Investment Summit praised the President’s approach and the deal with China.
“I think this is huge,” said Erie County Executive Brenton Davis. “I think the President, being aggressive and having a free and firm trade deal that’s fair that benefits America, is precisely what we need.”
Davis added that the agreement with China could bolster local economies.
“Lower consistent prices, it means more jobs, it means a better economy. It means being able to pay a fair and livable wage for those folks. Opportunities, that’s paramount for a good global economy, but also a local economy,” said Davis.
President Trump noted Monday that the agreement with China does not include all existing tariffs, like those imposed before April 2.
“That doesn’t include the tariffs that are already on, and it doesn’t include tariffs on cars, steel, aluminum, things such as that, or tariffs that may be imposed on pharmaceuticals, because we want to bring the pharmaceutical businesses back to the United States,” Trump said.
Leaders from both countries say the temporary 90-day agreement marks a strong step toward long-term economic cooperation. The new tariff revisions are set to be imposed on May 14.
