Going Easy on Tariffs: US and China Reach a 90-day Truce
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Tentative Deal: reduction in tariffs between China and the United States agreed upon - Tentative accord reached: Duties between China and the U.S. see a decline
Looks like a tariff truce is in the works between the USA and China! According to a joint statement, both countries have agreed to temporarily lower their trade tariffs for a 90-day period.
USA Makes a Move
Consequently, US tariffs on Chinese imports will be cut down to 30%, starting from the high of 145%. Meanwhile, China's tariffs on US imports will dip from 125% to a more manageable 10%.
Delegates from both sides met in the diplomatic city of Geneva for discussions, which both US and China reported progress in (but stayed hush on details).
As per Chinese reports, both sides have set in motion a consultation mechanism for addressing economic and trade issues, according to Vice-Premier He Lifeng. This meeting in Geneva seemed like a promising step toward settling disagreements through dialogue and forming a basis for future cooperation.
US Calls an Agreement
Per US reports, both sides have apparently struck a deal concerning the tariff conflict, potentially breaking the impasse in the trade clash. High-ranking US officials like Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer were part of these talks.
With both being the powerhouses of the world economy, China and the USA have been butting heads. The previous imposition of tariffs had made trade between the two virtually unattainable and negatively impacted the global economy as well.
- Key countries: China, USA
- Topics: Tariffs, Global Economy
Rich Background
To break it down, this recent trade pact between the US and China consists of significant points to ease tensions and foster a more stable economic relationship. Here's a look at the crucial aspects of this preliminary agreement:
- Tariff Reductions:
- China has decided to suspend 24 percentage points of additional tariffs on US goods for an initial 90-day period, keeping a 10% tariff on these goods.
- Both countries have mutually agreed to lower certain tariffs for 90 days under the deal.
- Removal of Non-Tariff Measures:
- China will move to suspend or eliminate non-tariff countermeasures taken against the US since April 2, 2025.
- Future Discussions:
- The agreement facilitates ongoing discussions on economic and trade relations. These talks will be spearheaded by Vice Premier He Lifeng for China and Scott Bessent and Jamieson Greer for the US.
- Location of Discussions:
- Future conversations may take place in China, the US, or a third country, depending on mutual agreement.
- Work-Level Consultations:
- Both parties may carry out working-level consultations on relevant economic and trade issues as necessary.
- The Commission has also been consulted on the draft budget as the ongoing dialogue between US and China involves not just trade matters, but also finance, business, and politics, which are often discussed in general-news.
- The industry is closely watching the developments between the US and China, as the trade truce could potentially influence import-export policies and lead to a general improvement in the global business environment.
- The latest tariff agreement between China and the US, which was negotiated in Geneva, affects both countries immensely, not just in terms of economics, but also in their political and industrial spheres.
