After extensive negotiations, the US and China will be cutting tariffs mutually for 90 days, aiming to mitigate the economic strains caused by previous steep tariffs that threatened global trade stability.
US and China Initiate 90-Day Tariff Reduction Amid Trade Discussions
US and China Initiate 90-Day Tariff Reduction Amid Trade Discussions
In a significant move towards easing trade tensions, the US and China have announced a 90-day temporary reduction in tariffs following productive trade talks in Switzerland.
In a landmark agreement reached after productive trade discussions in Switzerland, the United States and China have decided to temporarily reduce tariffs on each other’s goods. US Treasury Secretary Scott Bessent announced that both nations will cut their tariffs by 115% for a duration of 90 days, marking a significant step towards easing trade tensions that have escalated between the two countries.
This agreement follows the imposition of hefty tariffs earlier this year, with President Trump enforcing a staggering 145% tariff on Chinese imports and China retaliating with a 125% tariff on specific US goods. The resulting financial market turmoil and concerns over a potential global recession had prompted both sides to seek a resolution.
Under the new arrangement, the US tariffs on Chinese imports will decrease from 145% to 30%, while China will lower its tariffs on US imports to 10%. These changes are expected to provide some relief to the international trade environment, benefiting businesses and economies entangled in the trade conflict. As the deadline approaches in 90 days, the world will be watching to see if this temporary measure will lead to a more permanent trade agreement.
