U.S. and China Agree to Temporarily Slash Tariffs in Bid to Defuse Trade War
The 145 percent U.S. tariff on Chinese goods will come down to 30 percent under the deal. The U.S. Treasury secretary said “neither side wanted a decoupling.”
“… In a joint statement, the countries said they would suspend their respective tariffs for 90 days and continue negotiations they started this weekend. Under the agreement, the United States would reduce the tariff on Chinese imports to 30 percent from its current 145 percent, while China would lower its import duty on American goods to 10 percent from 125 percent.
“We concluded that we have a shared interest,” said Treasury Secretary Scott Bessent at a news conference in Geneva where U.S. and Chinese officials met over the weekend. “The consensus from both delegations is that neither side wanted a decoupling,” he said.
China said it will suspend or revoke countermeasures adopted in retaliation for escalating tariffs. In early April, the Chinese government had ordered restrictions on the export of rare earth metals and magnets, critical components used by many industries, including automakers, aerospace manufacturers and semiconductor firms.
… Mr. Bessent said the tariffs had effectively created an embargo, something neither side wanted. The two countries said that ongoing negotiations will involve Mr. Bessent, Mr. Greer and He Lifeng, China’s vice premier for economic policy, who led the weekend talks for the Chinese. …”