Tipsheet

US, China Agree to Drastically Lower Tariffs for 90-Day Period

China and the United States announced on Monday that tariffs will be significantly reduced for a 90-day period, a development that came after weekend trade negotiations in Geneva, Switzerland.

“We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process,” U.S. Treasury Secretary Scott Bessent said in a news conference.

“We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%,” Bessent said.

In a joint statement, the countries said they would suspend their respective tariffs for 90 days and continue negotiations they started this weekend. Under the agreement, the United States would reduce the tariff on Chinese imports to 30 percent from its current 145 percent, while China would lower its import duty on American goods to 10 percent from 125 percent. (NYT)

“We concluded that we have a shared interest,” Bessent added. “The consensus from both delegations is that neither side wanted a decoupling.”