US, China Reach Temporary Tariff Deal
(MENAFN) In a significant yet temporary breakthrough in their prolonged trade standoff, the United States and China have agreed to a broad reduction of harsh tariffs for a 90-day period.
This development, announced through a joint declaration on Monday, brings a rare sense of optimism to a relationship strained by ongoing economic hostilities and fosters hope for more lasting financial balance.
The accord was finalized after intensive negotiations over the weekend in Geneva. Under its terms, both nations will considerably cut taxes on each other's imports.
The United States will slash its levies on Chinese goods from 145 percent down to 30 percent, while China will reduce its own from 125 percent to 10 percent.
These adjustments are scheduled to take effect by May 14.
US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer unveiled the joint announcement during a media event held in Geneva.
Though the arrangement is limited to a 90-day window, it marks the most meaningful stride toward de-escalating trade hostilities in recent years.
The temporary relief is expected to provide much-needed stability to international financial markets that have been unsettled by prolonged trade uncertainty.
Within the joint declaration, both governments emphasized the necessity of building "a sustainable, long-term, and mutually beneficial" economic partnership.
As part of this effort, they intend to establish a new platform for ongoing discussions, which will be led by Chinese Vice Premier He Lifeng alongside Bessent and Greer.
During the briefing, Bessent noted that the negotiations were "very productive" and described the tone of the talks as "very positive."
He also stated that “the consensus from both delegations is that neither side wanted a decoupling,” and referred to the previous rounds of tariffs imposed by both countries as the "equivalent of an embargo."
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