U.S. and China Announce Temporary Tariff Reductions to Foster Trade Relations

The United States and China have jointly announced a temporary reduction in tariffs on each other’s imports, following productive negotiations held in Geneva over the weekend. This agreement marks a notable shift in the ongoing economic dialogue between the two nations.

According to the joint statement released by U.S. and Chinese officials, the U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will lower its tariffs on U.S. imports from 125% to 10%. This adjustment will be effective for a period of 90 days.

U.S. Treasury Secretary Scott Bessent emphasized the importance of the discussions, stating, “We had a very robust and productive discussion on steps forward on fentanyl. We are in agreement that neither side wants to decouple.”

The statement also outlined plans to establish a mechanism for ongoing dialogue regarding economic and trade relations. He Lifeng, Vice Premier of the State Council, will represent China in these discussions alongside U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

This announcement signifies a crucial step forward in U.S.-China trade relations, especially following President Donald Trump’s “Liberation Day” tariff declarations on April 2. The temporary reductions in tariffs may pave the way for enhanced collaboration and stability in global markets, reflecting a mutual interest in maintaining economic ties.