America has agreed to cut the “reciprocal” tariffs it imposed on China last month from 125% to a more digestible 10% for at least 90 days. China has agreed to do the same. It has also agreed to roll back other retaliatory measures, such as restrictions on sales of rare-earth minerals. …The result is a combination of tariffs that are far higher than Mr Trump inherited but much lower than seemed likely a few weeks ago. …On May 12th Mr Bessent all but conceded that tariffs on China had gotten out of hand. The result was the “equivalent of an embargo”. Financial chaos following Liberation Day, which included a bond-market revolt and a plunging dollar, helped Mr Bessent persuade Mr Trump to offer a 90-day reprieve to all of America’s trading partners on April 9th. After the Geneva talks, China has now been added to the list. [to access the full story an Economist subscription is required]

Related by the WSJ Editorial Board: The Great Trump Tariff Rollback – The President started a trade war with Adam Smith. He lost.