US and China Announce Agreement to Reduce Tariffs Significantly
The United States and China commit to temporarily lowering tariffs by 115% on each other's goods to ease trade tensions.
The United States and China have reached an agreement to reduce tariffs on each other's goods by 115% for a period of 90 days, marking a significant step toward de-escalating the ongoing trade tensions that have characterized their relationship in recent years.
According to US Treasury Secretary Scott Bessent, the tariffs imposed by Washington on Chinese goods will decrease from 145% to 30%.
Similarly, Beijing's tariffs on American goods will fall from 125% to 10%.
Bessent announced these developments following a meeting with senior Chinese officials in Geneva and described the discussions as robust, emphasizing mutual respect during this constructive dialogue.
In a subsequent statement, the White House indicated that both nations would create a mechanism intended to facilitate ongoing discussions regarding economic and trade relations.
The European Commission, responsible for overseeing the EU’s trade policy, expressed optimism regarding the announcement, noting that efforts to lower trade barriers should be pursued.
Eurogroup President Paschal Donohoe also welcomed the decision, highlighting the need for Brussels to continue advocating for zero tariffs with Washington.
In the immediate aftermath of the announcement, financial markets reacted positively.
The US dollar rose by 1.17% against a basket of currencies and increased by 1.16% against the euro.
Stock markets also exhibited gains, with the EURO STOXX 50 rising by 0.47% and Germany's DAX up by 0.72% as of 10:30 AM CET on Monday.
This announcement comes on the heels of US President Donald Trump's recent implementation of extensive tariffs on various trading partners, which had prompted reciprocal retaliatory actions from China.
Such escalations have raised concerns about a potential decoupling between the two largest economies globally.
EU officials had previously voiced apprehension that the tariffs imposed on China could divert significant volumes of Chinese goods to European markets, potentially harming industries within the EU. Currently, the EU faces a blanket 10% tariff from the United States, along with 25% duties on imports of steel, aluminum, and automobiles.
The European Union Chamber of Commerce in China welcomed the announcement but cautioned that uncertainty continues to loom over European firms operating within the Chinese market.
The Chamber, representing over 1,700 companies, indicated that the temporary suspension of tariffs for just 90 days creates a volatile environment for business operations, alongside the unpredictable nature of tariff implementations witnessed previously.
According to US Treasury Secretary Scott Bessent, the tariffs imposed by Washington on Chinese goods will decrease from 145% to 30%.
Similarly, Beijing's tariffs on American goods will fall from 125% to 10%.
Bessent announced these developments following a meeting with senior Chinese officials in Geneva and described the discussions as robust, emphasizing mutual respect during this constructive dialogue.
In a subsequent statement, the White House indicated that both nations would create a mechanism intended to facilitate ongoing discussions regarding economic and trade relations.
The European Commission, responsible for overseeing the EU’s trade policy, expressed optimism regarding the announcement, noting that efforts to lower trade barriers should be pursued.
Eurogroup President Paschal Donohoe also welcomed the decision, highlighting the need for Brussels to continue advocating for zero tariffs with Washington.
In the immediate aftermath of the announcement, financial markets reacted positively.
The US dollar rose by 1.17% against a basket of currencies and increased by 1.16% against the euro.
Stock markets also exhibited gains, with the EURO STOXX 50 rising by 0.47% and Germany's DAX up by 0.72% as of 10:30 AM CET on Monday.
This announcement comes on the heels of US President Donald Trump's recent implementation of extensive tariffs on various trading partners, which had prompted reciprocal retaliatory actions from China.
Such escalations have raised concerns about a potential decoupling between the two largest economies globally.
EU officials had previously voiced apprehension that the tariffs imposed on China could divert significant volumes of Chinese goods to European markets, potentially harming industries within the EU. Currently, the EU faces a blanket 10% tariff from the United States, along with 25% duties on imports of steel, aluminum, and automobiles.
The European Union Chamber of Commerce in China welcomed the announcement but cautioned that uncertainty continues to loom over European firms operating within the Chinese market.
The Chamber, representing over 1,700 companies, indicated that the temporary suspension of tariffs for just 90 days creates a volatile environment for business operations, alongside the unpredictable nature of tariff implementations witnessed previously.
Translation:
Translated by AI
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