According to the joint statement issued in Geneva by the United States and China, both sides will temporarily reduce tariffs on imports from each other to ease trade tensions and gain an additional three months to resolve their differences.

The agreement for the US and China to significantly lower tariffs will take effect on Wednesday.

Trump said at the White House on Monday: "Yesterday, we reached a full restart with the Chinese side. Following productive talks in Geneva, both sides agreed to reduce tariffs on imports from each other to 10% after April 2nd for a period of 90 days, while negotiators continue discussions on the most important structural issues."

He emphasized that if the US and China fail to reach a trade agreement within 90 days, tariffs on Chinese goods will rise again, but they will not return to the pre-Geneva levels of 145%.

After reaching an agreement in Geneva, the US agreed to temporarily reduce tariffs on Chinese goods from 145% to 30%. Beijing stated it would reduce tariffs on American goods from 125% to 10%. The US maintained the 20% tariff on Chinese goods imposed due to alleged smuggling of fentanyl into the US.

Treasury Secretary Scott Bessent said: "We had very in-depth and fruitful discussions about future measures regarding fentanyl. Both sides agree that neither wants to see decoupling."

The statement also noted: "Both sides will establish a mechanism to continue dialogue on economic and trade relations."

This announcement is seen as the first step in reducing the tariff war between the two countries, which has led to a sharp reduction in US-China trade. Representatives of the US and China indicated during the two-day talks in Geneva that significant progress had been made in negotiations, a message that boosted futures for US stocks and Asian equities.

The following is the joint statement on US-China economic and trade consultations in Geneva released by Xinhua News Agency:

The Government of the People's Republic of China ("China") and the Government of the United States of America ("the United States")

Recognize the importance of bilateral economic and trade relations to both countries and the global economy;

Recognize the importance of sustainable, long-term, mutually beneficial bilateral economic and trade relations;

In view of recent discussions, both sides believe that continued consultations will help address concerns in the economic and trade field;

In the spirit of mutual openness, continuous communication, cooperation, and mutual respect, continue to advance relevant work;

Both sides commit to taking the following measures by May 14, 2025:

The United States will (i) modify the ad valorem tariffs on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) specified in Executive Order No. 14257 of April 2, 2025, with a 24% tariff suspended for the initial 90 days while retaining the remaining 10% tariff as per the provisions of this executive order; (ii) cancel the additional tariffs on these goods under Executive Orders Nos. 14259 and 14266 of April 8 and 9, 2025.

China will (i) correspondingly modify the ad valorem tariffs on American goods specified in Announcement No. 4 of the Tariff Commission of the State Council of 2025, with a 24% tariff suspended for the initial 90 days while retaining the remaining 10% tariff, and cancel the additional tariffs on these goods under Announcements Nos. 5 and 6 of the Tariff Commission of the State Council of 2025; (ii) take necessary measures to suspend or cancel non-tariff countermeasures against the United States implemented since April 2, 2025.

After taking these measures, both sides will establish a mechanism to continue consultations on economic and trade relations. The Chinese representative is Vice Premier He Lifeng, and the U.S. representatives are Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer. Consultations can be held in China, the United States, or any third country agreed upon by both parties. As needed, both sides may conduct working-level consultations on relevant economic and trade issues.

(Xinhua News Agency, Geneva, May 12)

Original source: https://www.toutiao.com/article/7503703671125951011/

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