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Tentative Deal: Decrease in Tariffs Agreed upon between China and the USA - Tentative Accord Reached: Duties between China and US Lessened Reciprocally
In a bid to ease escalating trade tensions, the U.S.A. and China have agreed to temporarily cut their mutual import prices. As per a statement released jointly, this move marks a 90-day truce in the trade dispute.
USA Slashes Import Prices by 45%
Consequently, U.S. tariffs on Chinese imports will see a drastic reduction, dropping from a whopping 145% to a more manageable 30%. China, on the other hand, will lower its retaliatory tariffs on U.S. goods, slashing the current 125% to a more reasonable 10%.
Diplomatic representatives from both nations met in the Swiss city of Geneva to discuss these key issues. Progress was reported on both sides, although specific details were kept under wraps.
According to Chinese news outlets, both sides will establish a dialogue platform for managing economic and trade issues, according to Vice-Premier He Lifeng. The discussions in Geneva set the stage for ironing out differences and paving the way for future collaboration.
USA Reports Agreement Achieved
US reports claim that the two nations have struck a deal in the trade tariff impasse, potentially breaking the unyielding stalemate. The talks, which included US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer among others, took place.
Both the U.S.A. and China, the world's leading economies, have been at odds for quite some time. Previously imposed tariffs made commerce between the two nations nearly impossible, a struggle that extended to the global economy.
- China
- U.S.A.
- Tariffs
- Economic Tensions
ENRICHMENT DATA:The recent accord between the U.S.A. and China consists of the following points:
Agreement Terminologies
- Tariff Adjustments: In acknowledgement of the agreement, China will put a halt on a substantial chunk of recently imposed tariffs on U.S. goods. Initially, China will halt 24 percentage points of the additional tariff rate for a provisional period of 90 days, while retaining a 10% tariff on those goods [1][2]. The initial announcement by China of a 34% tariff on U.S. goods took place on April 4, 2025 [1].
- Non-Tariff Measures Withdrawal: Alongside this, China has also pledged to rollback non-tariff countermeasures instated against the U.S. since April 2, 2025 [2].
Geneva Discussions
- The deal was brokered following successful negotiations in Geneva, Switzerland, which resulted in the publication of a joint statement on U.S.-China economic and trade relations. This milestone development indicates a substantial stride forward in bilateral trade negotiations [1][2].
- Both parties recognized the importance of their bilateral economic and trade relationship for the global economy and reinforced their dedication to enhancing trade relations [1].
Dialogue Mechanism Setup
- As part of the agreement, a forum will be created for ongoing discussions about economic and trade relations. The meetings will be headed by key representatives from both sides, including He Lifeng, Vice Premier of the State Council for China, and Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative, for the U.S. [2].
- These discussions may take place alternatively in China, the United States, or a third country, based on mutual agreement. Additionally, working-level consultations will be held on various economic and trade issues as necessary [2].
This agreement is viewed as a significant step in boosting relations between the two nations, addressing longstanding issues such as unfair trade practices and the U.S.'s trade deficit with China [1].
- The Commission has also been consulted on the draft budget, given the significant impact that trade policies may have on finance, business, and the general news landscape.
- The reduction in tariffs announced by the U.S. and China is projected to have a profound influence on the economy, policy-and-legislation, and politics, as the world's leading economies seek to resolve their trade tensions.
- As diplomats from both nations continue to engage in discussions, it is crucial to monitor ongoing developments closely, as these talks could shape future economic and trade affairs on a global scale.
