WASHINGTON (TNND) — The United States and China agreed on Monday to cut back most of their recent tariffs for a 90-day truce in President Donald Trump’s trade war.
U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop its 145% tariffs on goods from China by 115 percentage points to 30%, and China agreed to lower its rate on U.S. goods by the same amount to 10%.
“The consensus from both delegations this weekend is neither side wants a decoupling,” Treasury Secretary Scott Bessent told reporters during a news conference in Geneva. “And what had occurred with these very high tariff … 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,” he added.
The reduction in tariffs will take effect on Wednesday, according to a joint statement.
China hopes the U.S will stop “the erroneous practice of unilateral tariff hikes” and work with China to safeguard the development of their economic and trade relations, injecting more certainty and stability into the global economy, China’s Commerce Ministry said.
“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” according to a ministry statement.
Last month, Trump raised U.S. tariffs on China to 145%, with China retaliating by hitting American imports with a 125% levy.
The United Kingdom and America also made some headway in the trade war on Thursday when Trump announced he agreed to cut tariffs on U.K. autos, steel and aluminum.
It was the first bilateral trade deal since Trump began slapping tariffs on U.S. trading partners in February.
