The world’s two biggest economies, the United States and China, have finally decided to take a breather from their tariff war. They agreed to a 90-day pause on most of the tariffs they have slapped on each other during a first round of trade talks in Switzerland over the weekend.
The U.S. and China shook hands on reducing U.S. tariffs on Chinese imports to 30% from a whopping 145%, while China will cut its levies on U.S. imports to 10% from a high 125%. This move is expected to bring some relief to the global economy, which has been reeling from the ongoing trade tensions between these economic giants.
The breakthrough announcement followed a meeting in Geneva, Switzerland, where the two countries discussed the escalating tariffs that have severely impacted trade between the world’s leading economies. They have also agreed to set up a mechanism for continuing discussions on economic and trade relations moving forward.
Representing the U.S. in these discussions will be Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, while China will be represented by Vice Premier He Lifeng. The talks may take place in China, the U.S., or in a third country mutually decided upon by both sides. Additionally, working-level consultations on relevant economic and trade matters will be conducted.
This is a developing story, so make sure to stay tuned for updates on this front.
The U.S. and China finally decided to hit the pause button on their tariff war after a round of trade talks in Switzerland. The U.S. will reduce tariffs on Chinese imports to 30%, while China will cut its levies on U.S. imports to 10%. This move is expected to ease the strain on the global economy caused by the ongoing trade tensions between these economic powerhouses.
