US, China agree to major reductions in tariffs for 90 days
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The United States and China will suspend part of their tariffs on their respective exports for 90 days, both countries said in a joint statement on May 12.
PHOTO: REUTERS
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Geneva - The United States and China will suspend part of their tariffs on their respective exports for 90 days, both countries said in a joint statement on May 12, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.
The combined 145 per cent US levies on most Chinese imports will be reduced to 30 per cent including the rate tied to fentanyl by May 14, while the 125 per cent Chinese duties on US goods will drop to 10 per cent, according to the statement and officials in a briefing on May 12.
Speaking after talks with Chinese officials in Geneva, Treasury Secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures and that reciprocal tariffs would come down by 115 percentage points.
“Both countries represented their national interest very well,” Mr Bessent said. “We both have an interest in balanced trade, the US will continue moving towards that.
“We had a very robust and productive discussion on steps forward on fentanyl,” he said. “We are in agreement that neither side wants to decouple.”
China hailed “substantial progress” with the US after the crunch trade talks in Geneva.
“This move... is in the interest of the two countries and the common interest of the world,” Beijing’s commerce ministry said, adding it hoped Washington would keep working with China “to correct the wrong practice of unilateral tariff rises”.
Both countries also pledged to establish a mechanism to continue discussions about economic and trade relations.
China will be represented at these discussions by Vice-Premier He Lifeng, while Mr Bessent and Trade Representative Jamieson Greer will represent the US.
The talks may be conducted in China, the US or at a third country.
US President Donald Trump slapped steep new levies on China in April, sparking a robust retaliation from Beijing.
The tariffs imposed by Mr Trump on the Asian manufacturing giant since the start of the year currently total 145 per cent
In retaliation, China put 125 per cent tariffs on US goods. BLOOMBERG
