In a significant development for global trade relations, the US and China have announced a 90-day reduction in tariffs after productive talks in Switzerland.
US and China Launch Temporary Tariff Reductions Amid Trade Talks
US and China Launch Temporary Tariff Reductions Amid Trade Talks
US and China have come to a temporary agreement to reduce tariffs on imports from each country.
In a bid to ease trade tensions, US Treasury Secretary Scott Bessent announced that the United States and China would cut their respective tariffs by 115% for a period of 90 days. This agreement follows a productive trade meeting in Switzerland, described by Bessent as “constructive." This marks the first diplomatic engagement since US President Donald Trump enforced significant tariffs on Chinese goods earlier this year.
In January, Trump levied a 145% tariff on imports stemming from China, prompting Beijing to retaliate with a 125% levy on certain American products. This tit-for-tat in tariffs has led to considerable upheaval in the financial markets and raised concerns about a potential global recession.
Under the new temporary agreement, US tariffs on Chinese imports will decrease to 30% over the next 90 days, while Chinese tariffs on US products will be reduced to 10%. This step is seen as a potential path toward stabilizing both economies and fostering better diplomatic relations moving forward.
As the world watches, the outcome of this agreement may determine the future direction of US-China trade relations and its far-reaching impacts on global markets.
