The US and China announced on Monday that they would drastically reduce most of mutual duties for 90 days to allow interviews to resolve their trade disputes. They stated this in a joint statement after two days of negotiations in Geneva. TASR reports this based on AP, AFP and Reuters.
It represents a significant alleviation of tensions in the commercial war between the two largest economies of the world that shook financial markets and raised concerns about the decline in the global economy.
The US sales representative Jamieson Greer said that The US agreed to reduce customs rate to Chinese goods by 115 percentage points to 30 % of 145 % and China agreed to reduce the rate to US goods to the same extent, thereby Customs drops to 10 % of 125 %.
Greer and US Finance Minister Scott Bessent announced a temporary reduction in tariffs at a press conference in Geneva. They also stated that Both parties started consultations on business issues. US President Donald Trump increased duties to imports from China to 145 % in April, and China raised duties to US imports to 125 % as a retaliation. Such high duties essentially represent a boycott of products of both countries.
US and China’s announcement of the agreement has started the growth of shares, with US shares have risen by more than 2 %, The Hong Kong Index increased by almost 3 % and stock indices in Germany and France increased by 0.7 %. He also strengthened the dollar in response to the report. Investors were feared that The US and China’s commercial dispute can result in a crisis, which could endanger global economic activity and increase uncertainty for businesses.
However, Greer warned that The agreement applies only to the so -called. reciprocal duties, while the US CLO of 10 % on the import of goods from around the world remains in force, as well as duties of 25 % on items such as steel, aluminum and cars. Customs of 20 % for China continue to be valid for its alleged role in the flow of illegal drug Fentanyl to the US, as well as other measures against Beijing taken during the first government of President Trump.
Further negotiations are planned between the two countries, with will lead consultations at the working level on relevant economic and business issues. However, despite the release of the dizzying high tariffs, analysts noted that the remaining duties are still higher than at the beginning of Trump’s second term in the White House in January 2025.
However, on Monday, China appreciated the “significant progress” that was achieved at the negotiations. “This step is in the interest of both countries and in the common interest of the world,” It was reported by the Chinese Ministry of Commerce and added that she hopes that Washington will continue to cooperate with China “to correct the wrong practice of unilateral increase in duties”.
Ng “In the midst of current global tension, this progress is important not only for the US and China, but also for the rest of the world, including the most vulnerable economies,” declared.
