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Geneva, May 12 (AP): US and Chinese officials said Monday they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war for more talks on resolving their trade disputes.

Stock markets rose sharply as the globe's two major economic powers took a step back from a clash that has unsettled the global economy.

US Trade Representative Jamieson Greer said the US agreed to drop its 145 per cent tariff rate on Chinese goods by 115 percentage points to 30 per cent, while China agreed to lower its rate on US goods by the same amount to 10 per cent.

Greer and Treasury Secretary Scott Bessent announced the tariff reductions at a news conference in Geneva.

The two officials struck a positive tone as they said the two sides had set up consultations to continue discussing their trade issues. Bessent said at the news briefing after two days of talks that the high tariff levels would have amounted to a complete blockage of each side's goods, an outcome neither side wants.

“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said. “And what had occurred with these very high tariff ... was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade."

“We want more balanced trade,” he said. "And I think that both sides are committed to achieving that."

The delegations, escorted around town and guarded by scores of Swiss police, met for at least a dozen hours on both days of the weekend at a sunbaked 17th-century villa that serves as the official residence of the Swiss ambassador to the United Nations in Geneva.

At times, the delegation leaders broke away from their staffs and settled into sofas on the villa's patios overlooking Lake Geneva, helping deepen personal ties in the effort to reach a much-sought deal.

China's Commerce Ministry said the two sides agreed to cancel 91 per cent in tariffs on each other's goods and suspend another 24 per cent in tariffs for 90 days, bringing the total reduction to 115 percentage points.

The ministry called the agreement an important step for the resolution of the two countries' differences and said it lays the foundation for further cooperation.

“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” a ministry statement said.

China hopes the US will stop “the erroneous practice of unilateral tariff hikes” and work with China to safeguard the development of their economic and trade relations, injecting more certainty and stability into the global economy, the ministry said.

The joint statement issued by the two countries said China also agreed to suspend or remove other measures it has taken since April 2 in response to the US tariffs.

China has increased export controls on rare earths including some critical to the defence industry and added more American companies to its export control and unreliable entity lists, restricting their business with and in China.

The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. And much depends on whether they will find ways to bridge longstanding differences during the 90-day suspension. Bessent said in an interview with CNBC that US and Chinese officials will meet again in a few weeks.

But investors rejoiced as trade envoys from the world's two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets.

Futures for the S&P 500 jumped 2.6 per cent and for the Dow Jones Industrial Average was up 2 per cent. Oil prices surged more than USD 1.60 a barrel and the US dollar gained against the euro and the Japanese yen.

“This is a substantial de-escalation,” said Mark Williams, chief Asia economist at Capital Economics. But he warned “there is no guarantee that the 90-day truce will give way to a lasting ceasefire.”

Jens Eskelund, president of the European Union Chamber of Commerce in China, welcomed the news but expressed caution. The tariffs only were suspended for 90 days and there is great uncertainty over what lies ahead, he said in a statement.

“Businesses need predictability to maintain normal operations and make investment decisions. The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences, and avoid taking measures that will disrupt global trade and result in collateral damage for those caught in the cross-fire," Eskelund said.

Trump last month raised US tariffs on China to a combined 145 per cent, and China retaliated by hitting American imports with a 125 per cent levy. Tariffs that high essentially amount to the two countries boycotting each other's products, disrupting trade that last year topped USD 660 billion.

The announcement by the US and China sent shares surging, with US futures jumping more than 2 per cent. Hong Kong's Hang Seng index surged nearly 3 per cent and benchmarks in Germany and France were both up 0.7 per cent.

The Trump administration has imposed tariffs on countries worldwide, but its fight with China has been the most intense. Trump's import taxes on goods from China include a 20 per cent charge meant to pressure Beijing into doing more to stop the flow of the synthetic opioid fentanyl into the United States.

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Mumbai/Kolkata/Silchar: A shocking incident aboard IndiGo flight 6E138 from Mumbai to Kolkata has gone viral, sparking outrage after a video emerged showing a man being slapped mid-flight while reportedly suffering a panic attack. The victim, identified as Hossain Ahmed Mazumdar from Assam, has since gone missing, and his family is seeking urgent answers.

The video, widely circulated on social media, shows Hossain in visible distress, attempting to leave his seat and reportedly requesting to deboard. As flight attendants tried to calm him down, another passenger suddenly approached and slapped him. The incident triggered immediate protest from fellow travellers.


Hossain, a gym trainer based in Mumbai, was en route to his hometown Katigorah in Cachar district via a connecting flight from Kolkata to Silchar. However, he never boarded the Silchar flight, and his mobile phone remains unreachable. His family, who had gathered at the Silchar airport, are now in distress. Zubairul Islam Mazumdar, a relative, said, “We have no idea where he is. We’ve contacted the police and airport authorities but haven’t received any concrete information.” His father, Abdul Mannan Mazumdar, who is undergoing cancer treatment, said tearfully, “He was our only hope. Now we don’t even know if he’s safe.” In a statement issued on August 1, IndiGo Airlines said: “We are aware of an incident involving a physical altercation on board one of our flights. Such unruly behaviour is completely unacceptable, and we strongly condemn any actions that compromise the safety and dignity of our passengers and crew. Our crew acted in accordance with established procedures. The individual identified as unruly was handed over to the security authorities upon arrival. Regulatory agencies have been informed as per protocol.”

However, the airline's statement has been criticised for failing to clarify what happened to Hossain after the incident, whether he received medical help, was detained, or was allowed to continue his journey.

The video triggered widespread anger on social media, with many users interpreting the slap as a possible hate-driven act. However, aviation journalist Jagriti Chandra of The Hindu offered a clarification on X, stating: “The passenger who assaulted a co-passenger aboard IndiGo flight was handed over to law enforcement agencies for unruly conduct. Incident occurred after one passenger was feeling uncomfortable in the flight and wanted to deboard. Both belong to the same religious community.”

Despite this clarification, concerns remain about the airline's handling of a visibly distressed passenger, particularly in the context of mental health. Unverified posts circulating on social media claim that Hossain was later found, though there has been no official confirmation from authorities or the airline.

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