GENEVA: The United States and China have agreed to a significant 90-day rollback of punitive tariffs, offering a rare window of relief in their prolonged trade dispute and renewing hope for more stable global economic relations.
Following intense negotiations over the weekend in Geneva, both nations announced a mutual reduction in tariffs, effective 14 May. The US will lower its tariffs on Chinese goods from 145% to 30%, while China will reduce its duties on American imports from 125% to 10%.
US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer jointly announced the deal at a press briefing, describing it as the most substantial breakthrough in years.
“This agreement marks a crucial step towards a sustainable, long-term, and mutually beneficial trade relationship,” the statement read.
The agreement also paves the way for a new dialogue mechanism, to be led by Chinese Vice Premier He Lifeng alongside Bessent and Greer. Talks will continue across various locations, including the US, China, or third-party countries, with lower-level technical discussions convened as required.
This temporary truce follows years of tit-for-tat tariffs that have disrupted global supply chains and heightened market uncertainty. The Geneva talks were prompted by a steep hike in tariffs by US President Donald Trump, which had drawn swift retaliatory measures from Beijing.
While temporary, the 90-day relief is seen as a crucial opportunity to stabilise trade relations between the world’s two largest economies.–BERNAMA
