US, China to roll back most tariffs, says US trade representative Greer
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Geneva: The United States and China announced Monday that they had reached an agreement to roll back a significant portion of their recent tariffs and implement a 90-day pause to continue negotiations aimed at resolving their trade disputes.
The breakthrough eased concerns over escalating tensions between the world's two largest economies, leading to a sharp rise in global stock markets.
According to US Trade Representative Jamieson Greer, the United States will reduce its tariff rate on Chinese imports from 145 per cent to 30 per cent, while China has agreed to lower its tariffs on American goods from 125 per cent to 10 per cent.
Greer and Treasury Secretary Scott Bessent announced the tariff reductions at a news conference in Geneva.
The two officials struck a positive tone as they said the two sides had set up consultations to continue discussing their trade issues.
During a news briefing following two days of negotiations, Bessent emphasised that the previously high tariff levels—145% on Chinese imports and 125% on American goods—had effectively created a trade blockade, an outcome neither country desired. He reiterated that both sides were committed to finding a more balanced trade arrangement to prevent further disruptions in global commerce.
“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said. “And what had occurred with these very high tariffs ... was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade. We want more balanced trade. And I think that both sides are committed to achieving that."
Trump last month raised US tariffs on China to a combined 145%, and China retaliated by hitting American imports with a 125% levy. Tariffs that high essentially amount to the two countries boycotting each other's products, disrupting trade that last year topped $660 billion.
The announcement by the U.S. and China sent shares surging, with US futures jumping more than 2%. Hong Kong's Hang Seng index surged nearly 3%, and benchmarks in Germany and France were both up 0.7%..
(inputs from PTI)
