U.S.-China Trade War Eases as Both Sides Agree to 115% Tariff Reduction

The United States and China have agreed to temporarily roll back tariffs on each other’s goods for an initial period of 90 days.

According to a report by American news network CNN, the announcement came following the conclusion of extensive trade negotiations between officials from the world’s two largest economies in Geneva, Switzerland.

A joint statement issued on the matter stated that by May 14, the U.S. will temporarily reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on U.S. imports from 125% to 10%.

The statement also noted that both sides agreed to establish a mechanism to continue discussions on economic and trade relations. These talks will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Besant, and U.S. Trade Representative Jamieson Greer.

The talks may be held alternately in China and the U.S., or in a third country by mutual agreement. When necessary, both parties will engage in working-level consultations to address coordinated economic and trade issues.

Following the conclusion of talks on Sunday, Washington mentioned progress toward an “agreement,” while Beijing emphasized mutual consensus to formally initiate the economic and trade negotiation process.

The trade war has already impacted both the U.S. and Chinese economies. On Friday, U.S. port officials told CNN that not a single cargo ship from China had arrived at two major West Coast ports in the past 12 hours—a situation not seen since the COVID-19 pandemic.