May 12 (UPI) — The United States and China said Monday that they have reached an agreement to cut most of their tariffs for 90 days to allow more time for continued economic and trade discussions.
The countries announced the 90-day pause on the majority of their tariffs in a statement. Under the agreement, the United States will reduce its tariffs on Chinese goods from the current 145% to 30%, and China will reduce its tariffs on U.S. goods from 125% to 10%.
The agreement was reached during trade negotiations in Geneva, Switzerland, where U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with their Chinese counterparts, including Vice Premier He Lifeng, over the weekend.
“We had very robust discussions. Both sides showed great respect,” Bessent told reporters in a press conference.
“Both countries represented their national interests very well. We concluded that we have shared interests and we both have an interest in balanced trade. The U.S. will continue moving towards that.”
According to the joint statement, Washington and Beijing agreed to “establish a mechanism to continue discussions about economic and trade relations.”
It stipulates that He will represent China in the discussions, and Bessent and Greer will represent the United States.
“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties,” it said.
The breakthrough in the trade war was immediately felt by the markets, with the Nasdaq futures seeing a 3.37% gain, the S&P 500 futures climbing by 2.49% and the Dow going up 1.95% or 808 points.
President Donald Trump has long turned to tariffs as a tool to even out trade deficits, as a negotiation tactic and as an attempt to spur domestic manufacturing.
He initially announced a 10% tariff on Chinese goods that he then doubled on accusations that Beijing wasn’t doing enough to curb the flow of drugs — specifically fentanyl — into the United States. Further tariffs were then piled on China. In response, Beijing announced retaliatory tariffs of its own, sparking the trade war and sending concerns through global markets.
This is a developing story.
