Trump hails total reset with China but doesn't give Beijing tariff relief on cars, steel, pharma in trade deal

US President Donald Trump on Monday said Washington achieved a “total reset” in trade relations with China, after details of trade agreement between the two nations were made public.

However, he clarified that the breakthrough deal does not apply to existing US tariffs on cars, steel, aluminum, or pharmaceuticals, the key sectors affected during the prolonged tariff conflict.

The United States and China earlier in the day announced a temporary truce in their tariff battle. As part of the arrangement, both countries agreed to sharply reduce tariffs for a 90-day period to allow further negotiations. The US will scale back duties on Chinese goods to 30 per cent, down from as high as 145 per cent, while China will reduce its tariffs on American imports to 10 per cent.

“We achieved total reset with China,” Trump said during a press conference, highlighting the progress made after high-level discussions in Geneva.

“Agreement doesn’t cover tariffs on cars, steel, aluminum or pharmaceuticals,” he added.

The US President also announced that he will likely be speaking to his Chinese counterpart Xi Jinping later this week.

Financial markets welcomed the announcement. The S&P 500 index jumped 3% in early trading on Monday, reflecting optimism among investors that the trade freeze could ease pressure on businesses and supply chains.