The United States and China have agreed to a significant reduction in tariffs on each other’s goods for a period of 90 days, following talks last weekend.
Speaking in Geneva, US Treasury Secretary Scott Bessent said that “both sides will reduce their tariffs by 115%” after agreeing to a 90-day pause.
–Trade war de-escalation-
It is a significant de-escalation of a trade war that escalated last month. Before today’s deal, the US had increased tariffs on Chinese goods to 145% (including an additional 20% imposed to curb fentanyl imports into the US), while Beijing retaliated with 125% tariffs on US imports.
Bessent told reporters that “both sides showed great respect” during the talks and that “both sides want balanced trade.”
