U.S. and China Agree to Mutual Tariff Reductions Amid Trade Talks

U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jameson Greer have announced significant progress in resolving the ongoing trade dispute with China.

Following a round of negotiations held in Switzerland, Bessent and Greer confirmed that talks with Chinese Vice Premier He Lifeng have led to a major breakthrough. The meetings, supported by Switzerland’s Permanent Representative to the UN, aimed to de-escalate the tariff war and prevent product shortages in key global markets.

Key Agreements:

• China will temporarily reduce import tariffs on American goods from 125% to 10% for a period of 90 days.
• The U.S. will reciprocate by lowering duties on Chinese imports from 145% to 30% for the same duration.

According to Bessent, both sides acknowledged the need for “swift and mutual steps to restore global trade stability.” China’s He Lifeng stated that “this compromise creates additional space for continued negotiations and will help build trust between the world’s two largest economies.”

The next round of discussions is scheduled for June, with both parties planning to formalize the temporary measures into legally binding agreements. If successful, analysts expect the deal to lead to lower consumer prices and a revival of trade flows between the U.S. and China.

Source: Reuters