The US and China have made a significant decision to temporarily reduce tariffs on each other’s goods, marking an important step towards de-escalating the trade war between the two largest economies in the world. This decision aims to lessen trade tensions and provide both parties with an additional three months to resolve existing differences.
This is reported by Finway
According to a report by Bloomberg, the total 145% tariffs imposed by the US on most Chinese goods will be reduced to 30%, including the rate concerning fentanyl, which will decrease by May 14. Meanwhile, China’s 125% tariffs on American goods will also be lowered to 10%.
“We had a very active and productive discussion about the next steps regarding fentanyl. We agree that neither side wants to sever relations,” said US Treasury Secretary Scott Bessent.
Additionally, it is noted that both parties intend to establish a mechanism for continuing discussions on economic and trade relations. This statement is an important step towards de-escalating the tariff war.
Trade Representative Jamison Greer emphasized that the US aims to achieve a more balanced trade relationship with China. The White House characterized this decision as a “trade agreement,” but it remains unclear what goals may be acceptable to both sides and how long it will take to achieve them.