US and China agree to drastically roll back tariffs in major trade breakthrough

[Starmix]

According to the report, the United States and China agreed Monday to drastically roll back tariffs on each other’s goods for an initial 90-day period, in a surprise breakthrough that has de-escalated a punishing trade war and buoyed global markets. The announcement, which was made in a joint statement, comes after a weekend of marathon trade negotiations in Geneva, Switzerland, by officials from the world’s two largest economies, during which both sides touted “substantial progress.” Both sides recognize “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship,” they said in the statement.

The report stated that the mutual tariff revisions will be imposed by May 14. Trump’s 20% fentanyl-related levies on China, imposed in February and March, will stay. However, each side has agreed to lower “reciprocal” tariffs on the other by 115 percentage points for 90 days.

The report added that, the United States and China agreed Monday to drastically roll back tariffs on each other’s goods for an initial 90-day period, in That effectively means the US will temporarily lower its overall tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%, according to the joint statement.

In addition, under the agreement, China will also suspend or cancel its non-tariff countermeasures imposed on the US since April 2. As part of its retaliatory measures against the US, Beijing had imposed export restrictions on some rare-earth minerals; placed dozens of American firms on its “unreliable entity list” and “export control list;” and launched an anti-monopoly probe into US chemical giant DuPont.

Source: B B C

 

[magnus2022]

I think Mr Trump have learnt some good lessons about the drastic increment in tariffs. No country is self sufficient and will always depend on others to have a balanced economy. China have cheaper labour and have human resources that are always available.

 

[Starmix]

The tariff for China rolled back from 145 % to 30 %, likewise China also reduced the US imports from 125% to 10 %. That's a good thing to stop the trade war. President Xi also diplomatic.