The United States and China have agreed to substantially reduce tariffs on their respective products for 90 days, after weekend negotiations in Switzerland. In Geneva, the US Treasury Secretary, Scott Besent, has affirmed that “both parties will reduce their tariffs by 115%” for 90 days, for the moment.
According to a joint statement released after the round of conversations held in Geneva this Saturday and Sunday, Beijing will reduce tariffs on US products of 125% to 10% for the next 90 days, while Washington will cut their taxes to Chinese goods from 145% to 30% during the same period. The statement emphasizes that the agreement has been based on “the spirit of mutual opening, continuous communication, cooperation and mutual respect.”
“We have concluded that we have a shared interest,” said Treasury Secretary Scott Besent. “The consensus of both delegations is that none of the parties wanted a separation,” he added.
The agreement represents a significant decala in the commercial war initiated last month, when President Donald Trump announced tariffs to most of the United States commercial partners and was progressively increasing in the case of China. Washington came to apply a 145% tariff to Chinese imports (including a 20% tariff to stop fentanyl imports to the United States) and Beijing responded with 125% tariffs on US imports.
The two powers have also agreed to establish “a mechanism to continue conversations about economic and commercial relations,” according to the joint statement. These conversations can be held alternately in China and the United States, or in a third country, and “both parties can hold work consultations on relevant economic and commercial issues,” details the text, in which the US and China recognize “the importance of their bilateral economic and commercial relationship for both countries and for the world economy”.
European markets have reacted with a rapid increase after the announcement of de -escalated.
Source: www.eldiario.es
