On Monday, Treasury Secretary Scott Bessent announced that the United States and China were walking back from an all-out trade war. The leaders of each country have recognized that immediately imposing very high tariffs on the goods traded between the two nations would do grave damage to their respective economies. 

According to the preliminary agreement, the U.S. would reduce tariffs on Chinese imports to 30% from 145%. In return, China would lower its tariffs on U.S. goods to 10% from 125%.