A worker arranges boxes of imported pork from the US at a cold storage warehouse in Shanghai | photo credit: Bloomberg
The United States and China have reached a reciprocal deal to slash tariffs, marking a major step toward ending their trade dispute.
According to the deal, US tariffs on Chinese imports will fall from 145 percent to 30 percent, while Chinese tariffs on US goods will fall to a low 10 percent from 125 percent.
Scott Bessent, US treasury secretary, announced the tariff reduction on Monday during a news conference following two days of negotiations in Geneva, Switzerland.
Bessent said the deal would take effect from May 14 (Wednesday) and would last 90 days.
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Before the negotiation talks kicked off, US President Donald Trump teased concessions. He suggested 80 percent as a benchmark but said he would leave the decision to Bessent.
He Lifeng, China’s vice premier, led the Chinese delegation. It was the first official engagement on trade since the imposition of significant tariffs by the US administration and a subsequent retaliation from China.
Karoline Leavitt, White House press secretary, said the agreement was “an extraordinary first step in the right direction”.
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Leavitt said China also agreed to “continue having discussions” about further opening its market to US products and goods and to “continue seriously discussing the grave impact that Chinese produced fentanyl is having” in the US.
“President Trump will continue negotiations with China, so we can hopefully, inevitably get to a fair and comprehensive, big trade deal,” she added.
Stock markets have since leapt after experiencing major losses since Trump announced his global tariff blitz.
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