U.S. and China agree to slash reciprocal tariffs in major step toward easing trade war
Context:
The United States and China have taken a significant step toward resolving their trade war by agreeing to a 90-day pause on most tariffs they have imposed on each other. This agreement follows a meeting in Switzerland, where the two nations decided to slash U.S. tariffs on Chinese imports from 145% to 30%, and Chinese tariffs on U.S. imports from 125% to 10%. Both countries will continue discussions on economic and trade relations and have established a mechanism for ongoing dialogue. These discussions will be led by U.S. Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng. Future negotiations may occur alternately in the U.S., China, or a mutually agreed-upon third country, and may include working-level consultations on relevant issues.
Dive Deeper:
The United States and China have agreed to a temporary 90-day suspension of most tariffs imposed on each other, marking a significant move towards calming the trade tensions that have been affecting the global economy.
Following talks in Geneva, the U.S. announced it would reduce tariffs on Chinese imports from 145% to 30%, while China agreed to cut its levies on U.S. goods from 125% to 10%.
This decision is part of broader efforts to ease trade barriers and improve economic relations between the world's two largest economies.
The agreement includes a commitment to establish a mechanism for ongoing discussions about economic and trade affairs, involving senior officials from both countries.
Negotiations will continue to be led by U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, alongside Chinese Vice Premier He Lifeng.
Future meetings may take place alternately in China and the United States or in a third country agreed upon by both parties, ensuring flexibility in the negotiation process.
The talks may also involve working-level consultations to address specific economic and trade issues, providing a platform for more detailed and technical discussions.