US and China agree to lower trade tariffs on each other, some details revealed

The US and China have agreed to significantly reduce tariffs on each other's goods for 90 days, following their negotiations last weekend.

The announcement comes after a weekend of marathon trade negotiations in Geneva, Switzerland, by officials from the world's two largest economies.

As CNN points out, the United States will temporarily reduce its tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American imports from 125% to 10%, according to the joint statement.

The two sides also agreed to establish “a mechanism to continue discussions on economic and trade relations,” led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.

"These discussions may be held alternatively in China and the United States, or in a third country by agreement of the parties. Upon request, the two sides may hold working-level consultations on relevant economic and trade issues," a statement was quoted as saying.

This is seen as a significant reduction in tensions in the trade war that erupted last month.

Before this deal, the US had raised its tariff on China to 145% (including the 20% tariff added to address fentanyl imports into the US), with Beijing retaliating with 125% tariffs on US imports.

As the media points out, Bessent told reporters that "both sides showed great respect" during their talks and that "we both have an interest in balanced trade."

Bessent also said that in last weekend's talks there was a consensus from the US and Chinese delegations that "neither side wants a breakaway."

Bessent added that the US wants more balanced trade and he thinks both sides are committed to achieving this. /Telegraph/