US and China: Tariff war postponed
Economy
After months of fierce confrontation, Washington and Beijing announced the "reboot" of trade relations. Mutual tariffs will be reduced several times, but only for 90 days - will the parties manage to find a compromise?
The US and China have reached a temporary trade agreement, which provides for a significant reduction in mutual tariffs for 90 days. Negotiations were held on May 10-11 in Geneva between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Both sides described them as "open and constructive."
Key agreements:
- The US will reduce tariffs on Chinese goods from 145% to 30%.
- China will reduce tariffs on American imports from 125% to 10%.
- The eased tariffs will last for 90 days - until the middle of August.
Negotiations in Geneva lasted 8 hours. Both sides called them "constructive," but the details of the agreement are not yet disclosed.
This is the first major agreement between the countries after a series of tense tariff exchanges. In the spring of 2025, the US imposed maximum tariffs on Chinese goods, accusing Beijing of restricting access to American companies and supplying components related to the production of fentanyl. In response, China introduced mirror measures and restricted the export of rare earth metals, which are critically important for high technology and defense.
Why is this important?
- The trade conflict froze $600 billion in trade turnover.
- Companies like Amazon and IKEA have already faced price increases and shortages.
The agreement is accompanied by the creation of a permanent mechanism for trade consultations.
Trump stated that "progress is being made," but he threatened to return the duties if China "breaks the agreements."
Key agreements:
- The US will reduce tariffs on Chinese goods from 145% to 30%.
- China will reduce tariffs on American imports from 125% to 10%.
- The eased tariffs will last for 90 days - until the middle of August.
Negotiations in Geneva lasted 8 hours. Both sides called them "constructive," but the details of the agreement are not yet disclosed.
This is the first major agreement between the countries after a series of tense tariff exchanges. In the spring of 2025, the US imposed maximum tariffs on Chinese goods, accusing Beijing of restricting access to American companies and supplying components related to the production of fentanyl. In response, China introduced mirror measures and restricted the export of rare earth metals, which are critically important for high technology and defense.
Why is this important?
- The trade conflict froze $600 billion in trade turnover.
- Companies like Amazon and IKEA have already faced price increases and shortages.
The agreement is accompanied by the creation of a permanent mechanism for trade consultations.
Trump stated that "progress is being made," but he threatened to return the duties if China "breaks the agreements."
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