{"id":74077,"date":"2025-05-12T14:24:55","date_gmt":"2025-05-12T09:24:55","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=74077"},"modified":"2025-05-12T14:24:55","modified_gmt":"2025-05-12T09:24:55","slug":"us-china-agree-to-slash-tariffs-in-trade-war-de-escalation","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/world\/us-china-agree-to-slash-tariffs-in-trade-war-de-escalation\/","title":{"rendered":"US, China agree to slash tariffs in trade war de-escalation"},"content":{"rendered":"

GENEVA: The United States<\/a> and China announced on Monday an agreement to drastically reduce tit-for-tat tariffs for 90 days, de-escalating a\u00a0trade war\u00a0that has\u00a0roiled\u00a0financial markets and raised\u00a0fears\u00a0of a global economic downturn.<\/a><\/p>\n

After their first talks since US President Donald Trump launched his trade war, the world\u2019s two biggest economies agreed in a joint statement to bring their triple-digit tariffs down to two figures and continue negotiations.<\/p>\n

US Treasury Secretary Scott Bessent described the weekend talks with Chinese Vice Premier He Lifeng and international trade representative Li Chenggang as \u201cproductive\u201d and \u201crobust\u201d.<\/p>\n

\u201cBoth sides showed a great respect,\u201d Bessent told reporters.<\/p>\n

US President Donald Trump had\u00a0imposed duties of 145 per cent on imports for China last month, compared to\u00a010pc\u00a0for other countries in the global tariff blitz he launched last month.<\/p>\n

Beijing\u00a0hit back with duties of 125% on US goods.<\/p>\n

Bessent said the two sides agreed to reduce those tariffs by 115pc, taking US tariffs to 30pc and those by China to 10pc.<\/p>\n

In their statement, the two sides agreed to \u201cestablish a mechanism to continue discussions about economic and trade relations\u201d.<\/p>\n

China hailed the \u201csubstantial progress\u201d made at the talks.<\/p>\n

\u201cThis move\u2026 is in the interest of the two countries and the common interest of the world,\u201d the Chinese commerce ministry said, adding that it hoped Washington would keep working with China \u201cto correct the wrong practice of unilateral tariff rises\u201d.<\/p>\n

The dollar, which tumbled after Trump\u00a0launched\u00a0his tariff blitz in April, rallied on the news while US stock futures soared. European and Asian markets also rallied.<\/p>\n

The trade dispute between Washington and Beijing has rocked financial markets, raising fears the tariffs would rekindle inflation and cause a global economic downturn.<\/p>\n

<\/a>\u2018Bodes well for the future\u2019<\/h2>\n

The head of the World Trade Organization, Ngozi Okonjo-Iweala, praised the talks on Sunday as a \u201csignificant step forward\u201d that \u201cbodes well for the future\u201d.<\/p>\n

\u201cAmid current global tensions, this progress is important not only for the US and China but also for the rest of the world, including the most vulnerable economies,\u201d she added.<\/p>\n

Ahead of the meeting at the discreet villa residence of Switzerland\u2019s ambassador to the United Nations in Geneva, Trump had\u00a0signalled\u00a0he might lower the tariffs, suggesting on social media that an \u201c80% Tariff on China seems right!\u201d<\/p>\n

However, White House Press Secretary Karoline Leavitt later clarified that the United States would not lower tariffs unilaterally, saying China would also need to make concessions.<\/p>\n

The Geneva meeting came days after Trump\u00a0unveiled\u00a0a trade agreement with Britain, the first with any country since he unleashed his blitz of global tariffs.<\/p>\n

The five-page, nonbinding deal confirmed to nervous investors that Washington was willing to negotiate sector-specific relief from recent duties.<\/p>\n

But Trump maintained a 10pc levy on most British goods, and threatened to keep it in place as a baseline rate for most other countries.<\/p>\n","protected":false},"excerpt":{"rendered":"

GENEVA: The United States and China announced on Monday an agreement to drastically reduce tit-for-tat tariffs for 90 days, de-escalating a\u00a0trade war\u00a0that has\u00a0roiled\u00a0financial markets and raised\u00a0fears\u00a0of a global economic downturn. After their first talks since US President Donald Trump launched his trade war, the world\u2019s two biggest economies agreed in a joint statement to bring […]<\/p>\n","protected":false},"author":14,"featured_media":74078,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[470,875,27549],"class_list":["post-74077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world","tag-china","tag-usa","tag-trade-war"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=74077"}],"version-history":[{"count":1,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74077\/revisions"}],"predecessor-version":[{"id":74079,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/74077\/revisions\/74079"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/74078"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=74077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=74077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=74077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}