U.S., China Forge Major 90-day Tariff Rollback
(MENAFN) In a surprising turn of events, the United States and China have announced a significant rollback of punitive tariffs for an initial 90-day period. This development, detailed in a joint statement released by the U.S. on Monday, offers a glimmer of hope for easing the prolonged trade dispute between the two economic giants and potentially stabilizing global markets.
The agreement, forged after intense negotiations held over the weekend in Geneva, will see both nations substantially decrease the duties imposed on each other's products. By May 14, the U.S. will reduce its tariffs on Chinese goods from 145% to 30%, while China will lower its own tariffs on American products from 125% to 10%.
U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer presented the joint statement to the public during a press briefing in Geneva.
Despite its temporary nature, this agreement marks the most substantial progress in de-escalating trade tensions in recent years, offering a much-needed reprieve to global markets that have been shaken by months of uncertainty.
In their joint statement, both governments recognized the importance of "a sustainable, long-term, and mutually beneficial" trade relationship.
To ensure continued progress, the two sides will establish a new dialogue mechanism, to be spearheaded by Chinese Vice Premier He Lifeng, along with Bessent and Greer.
Future discussions may take place in "China, the United States, or a third country upon agreement of the parties" with lower-level technical meetings to be scheduled as necessary.
This unexpected tariff reduction follows years of reciprocal tariffs that have disrupted global supply chains and contributed to economic unease.
The negotiations, which commenced on Saturday in the Swiss city, were initiated after US President Donald Trump increased tariffs on Chinese imports to 145%, prompting a retaliatory response from Beijing, which imposed 125% duties on American goods.
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