Washington: The United States and China on Wednesday slashed most of their recent new tariffs on each other’s imports and suspended part of the so-called reciprocal duties for 90 days, in line with a deal struck during high-level trade talks over the weekend in Switzerland.
Because of what U.S. President Donald Trump called a “total reset” with China, his administration cut the tariffs it had imposed on the Asian economy under his second presidency to 30 percent from 145 percent. China, meanwhile, reduced its retaliatory tariffs on the United States to 10 percent from 125 percent.
The United States, however, has decided to retain 10 percent of a 34 percent tariff hike on all Chinese imports introduced as part of its “reciprocal” scheme in early April, while the remainder will be negotiated during the 90-day pause.
The Trump administration has also maintained a separate 20 percent levy imposed over what it views as China’s insufficient efforts to curb the flow of fentanyl into the United States.
China has also retained at least 10 percent of its early-April retaliatory tariff on all American goods, with the remaining 24 percent similarly on the negotiating table in the coming weeks.
During the high-level talks in Geneva, China agreed to suspend or remove the nontariff countermeasures it has taken against the United States since April 2. These include export controls on seven types of rare-earth minerals essential for high-tech industries.
On Tuesday, while delivering a speech before an investment forum in Saudi Arabia, Trump said his administration reached a “breakthrough agreement with China,” under which it has promised to “open up to the United States for trade and everything else.”
Trump said he will “see what happens” in the upcoming negotiations with China, with the bilateral talks aiming to iron out more details for the future trade relationship of the world’s two largest economies.
A day earlier, Trump said he may speak to Chinese leader Xi Jinping at the end of the week.
In addition to each side lowering its respective tariff rate on the other by 115 percentage points, senior U.S. and Chinese officials agreed to establish an economic and trade consultation mechanism to discuss issues of mutual concern.
In the tit-for-tat trade war that rattled the rest of the world for weeks, the United States raised its tariffs on Chinese goods to at least 145 percent, while China’s duties on U.S. products reached a minimum of 125 percent.
The United States and China are set to hold additional discussions during the 90-day period.
As in the Geneva talks, the representatives will be Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
BY: The Times Union
