The U.S. and China have agreed to cut reciprocal tariffs for 90 days in an effort to establish the basis for negotiations in a broader potential trade deal.
The agreement was announced in a joint statement, with both sides recognizing the importance of a sustainable, long-term and mutually beneficial economic and trade relationship.
Driving the news: Talks took place in Geneva, Switzerland over the weekend, aiming to alleviate the trade war that was initiated by President Donald Trump’s tariff measures in April.
- Treasury Secretary Scott Bessent stated at a press conference that both sides had reached an agreement to substantially decrease tariff levels during the 90-day pause.
- U.S. Trade Representative Jamieson Greer confirmed that under the agreement, the U.S. and China will maintain 10% reciprocal tariffs, with both sides committing to reducing their tariffs by 115%.
Go deeper: During the pause, the effective tariff on Chinese goods entering the U.S. will be 30%, while China’s effective tariffs will be at 10%.
- The changes are set to come into force by Wednesday, as mentioned in the joint U.S.-China statement.
