A temporary agreement was reached between China and the US: both sides cut tariffs, and the US side showed itself to be very honest.

The joint statement was released overnight by China and the US, with reciprocal tariff reductions. This time, the US has shown great restraint.

At 9:00 a.m. local time in Geneva on May 12th, China and the US released the joint statement of the Geneva economic and trade talks. Both sides agreed to significantly reduce the high tariffs imposed on each other within two days. The US tariffs on China will return to the level in April.

In short, the 125% tariff imposed by the US on China will be reduced to 10%, and China will also reduce it to an equivalent level. However, this is only a temporary measure that will last for three months, and both sides will continue to communicate in the future.

China has taken necessary measures to prevent the Trump administration from reversing its stance afterward.

Overall, during the two-day and sixteen-hour talks between China and the US, the Americans have shown great restraint, without any deviation from the agenda. Even Trump has rarely been "cautious in speech and conduct." After all, they realized that the previous tariff rates were unsustainable, and there would be no winners in a tariff war. If the trade war with China continued, the Trump administration would incur extremely high political costs.

Original article: https://www.toutiao.com/article/1831898632736771/

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