The United States and China agreed on Monday to mutually reduce tariffs for 90 days.
According to a joint statement released in Geneva, the US and China have decided to ease trade tensions and give their economies more time to resolve their differences. The parties will establish a mechanism to continue discussions on economic and trade relations, the meeting participants emphasised.
The US’s combined tariffs of 145 per cent on most Chinese imports will be reduced to 30 per cent, including the rate linked to fentanyl. In turn, China’s tariffs of 125 per cent on US goods will be reduced to 10 per cent.
Earlier, the countries reported “significant progress” in the negotiations, which supported the markets and helped Chinese stocks recover after President Donald Trump announced the tariffs on April 2, “America’s Independence Day.” According to US Trade Representative Jamieson Greer, Washington wants to establish more balanced trade with China.
As a result of the tariff war announced in the US, a record trade deficit has emerged. Many companies, frightened by the impending tariffs, rushed to buy imported products, causing the trade deficit in goods and services to grow by 14 per cent compared to the previous month, to $140.5 billion. Imports grew primarily due to a surge in pharmaceutical imports. In addition, deliveries of capital equipment and motor vehicles jumped.
