The move by the Trump administration to lower tariffs on goods from China to 30% from 120%, still offers limited reprieve for US small businesses, who remain cautious as tariffs are still sky high by historical levels and are also pressuring profits.

The 90-day tariff truce between the US and China is expected to increase shipments and production over the next three months. The de-escalation also provides relief for China’s economy. “We now believe H1 growth will be stronger than previously expected,

In its first concrete steps since Trump ratcheted up tariffs, Beijing stuck to its incremental approach to addressing economic pain.

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer told reporters that more details would be provided on Monday.

Both countries have agreed to reduce reciprocal tariffs by 115% for an initial 90-day period as talks continue.

The president has backtracked repeatedly on his tariff policies, creating a whiplash with downsides and few clear benefits so far.