In a significant move to de-escalate the ongoing trade war, the United States and China have agreed to drastically reduce their tit-for-tat tariffs for 90 days. This agreement comes after the first talks between the two nations since US President Donald Trump initiated the trade conflict, which has unsettled financial markets and sparked fears of a global economic downturn.
The world’s two largest economies issued a joint statement announcing their decision to lower their triple-digit tariffs to two figures and continue negotiations. US Treasury Secretary Scott Bessent described the weekend discussions with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang as “productive” and “robust,” highlighting the mutual respect shown by both sides.
Previously, President Trump had imposed a hefty 145 percent duty on Chinese imports, significantly higher than the 10 percent tariffs applied to other countries. In retaliation, Beijing imposed 125 percent duties on US goods. The new agreement will see these tariffs reduced by 115 percentage points, bringing US tariffs down to 30 percent and Chinese tariffs to 10 percent.
The joint statement also mentioned the establishment of a mechanism to continue discussions on economic and trade relations, signaling a commitment to ongoing dialogue and cooperation .
+ There are no comments
Add yours