Geneva - (Saba):
China and the United States agreed on Monday to substantially eliminate tariffs on each other's goods for an initial 90-day period, a surprise achievement that has boosted global markets.
Under the agreement, the United States will temporarily reduce its tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on US imports from 125% to 10%, according to the joint statement.
In a joint statement, the two governments announced their commitment to take these steps by May 14, 2025, recognizing the importance of bilateral economic relations and their impact on the global economy, and seeking to establish a long-term, sustainable, and mutually beneficial relationship, according to a White House statement.
This announcement comes after a weekend of marathon trade negotiations in Geneva, Switzerland, between officials from the world's two largest economies, during which both sides hailed "tangible progress."
The Chinese and American sides also agreed to establish a mechanism to continue economic and trade talks. The Chinese side will be represented by Vice Premier He Lifeng, while the American side will be represented by Treasury Secretary Scott Besant and Trade Representative Jameson Greer.
The meetings will alternate between China and the United States, or in a third country mutually agreed upon by both sides, with the possibility of holding technical consultations at the working-level on related issues.
The dispute over US President Donald Trump's 145% tariffs on China, which China responded by raising its tariffs on US products to 125%, has sparked warnings of a trade war between the two countries that would have negative repercussions for the global economy.