On Monday, US and Chinese officials reportedly announced a significant reduction of the recent tariffs that have led to economic uncertainty around the world.

At a press conference in Geneva US Treasury Secretary Scott Bessent and US trade representative Jamieson Greer said that the US would lower its current 145% tariff rate on Chinese goods to 30%. China said it would drop its US tariffs to 10%.

China's Commerce Ministry said there was a joint agreement to cancel 91% of the tariffs levied against each nation, and to suspend 24% in tariffs for 90 days, while officials work on striking a broader trade deal.

What it means: The sharp rise in tariffs over the last month has retailers scrambling to understand how the duties will affect prices, budgets, and the larger supply chain. This ceasefire should give the industry a reprieve from considering price hikes, as well as time to weigh their options for a rapidly shifting trade environment and to potentially diversify supply chains.

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