Key points
- Two nations would suspend their respective tariffs for 90 days
- US to reduce tariffs on Chinese imports from 145pc to 30pc
- China would lower its import duties on US goods from 125pc to 10pc
ISLAMABAD: The United States and China announced on Monday that they had reached a temporary agreement to ease the steep tariffs they had imposed on each other, aiming to de-escalate the trade conflict between the world’s two largest economies.
In a joint statement, the two nations said they would suspend their respective tariffs for a period of 90 days to allow for further negotiations.
According to the agreement, the United States would reduce tariffs on Chinese imports from 145 per cent to 30 per cent, while China would lower its import duties on American goods from 125 per cent to 10 per cent, according to The New York Times.
Speaking at a press conference in Geneva, where officials from both sides met over the weekend, Secretary Scott Bessent stated: “The consensus from both delegations is that neither side is seeking a decoupling.”
Ending deadlock
The accord ends a deadlock that had effectively frozen trade between the two countries. Many American businesses had halted orders in anticipation of a potential deal to lower tariffs, raising concerns over possible price increases.
Chinese manufacturers also saw a significant drop in orders bound for the United States, placing further strain on an already sluggish economy.
Global markets responded positively to the news. The benchmark index in Hong Kong rose by three per cent, mirroring gains in S&P 500 futures.
Mutual respect
Bessent, along with Jamieson Greer, the US Trade Representative under the Trump administration, said the negotiations also covered US demands for Beijing to clamp down on the trafficking of chemicals used to produce fentanyl. Bessent said the Chinese side “recognised the seriousness” of the fentanyl crisis in the United States.
President Trump had initially imposed a 20 per cent tariff on Chinese exports, accusing China of failing to curb the flow of fentanyl into the US. That penalty remains in force.
Greer described the talks as marked by “mutual understanding and mutual respect,” though he pointed out that China was the only nation to retaliate against the US after President Trump introduced reciprocal tariffs on several countries last month.
