US and China Reach Temporary Tariff Agreement Amid Ongoing Trade Talks

The recent 90-day tariff cut aims to stabilize markets and encourage fruitful trade relations between the two powers.

In a significant development within Sino-American trade relations, the United States and China have announced a temporary agreement that will see both countries reduce the tariffs they impose on each other’s imports. US Treasury Secretary Scott Bessent confirmed that tariffs will be slashed by 115% for a period of 90 days.

This agreement follows a series of trade negotiations held in Switzerland over the weekend, which were characterized by Bessent as productive and constructive. It marks the first formal discussions since President Donald Trump imposed stringent tariffs on Chinese goods, which began in January. Initially, Trump levied a substantial 145% tariff on imports from China, while Beijing retaliated with a 125% tariff on certain US products.

These high tariffs propelled volatility within global financial markets and raised concerns regarding a potential global economic downturn. In response to the new agreement, the US will now reduce its tariffs on Chinese imports to 30%, while tariffs on US imports will decrease to 10% for the duration of the 90-day period.

The temporary measures aim to alleviate some of the pressure from the trade war, potentially restoring faith in economic stability between the two nations. With the world watching closely, the success of this tariff reduction could serve as a crucial step towards fostering a more amicable trade relationship in the future.