US And China Agree To Roll Back Tariffs For 90 Days, US To Cut Tariffs From 145% To 30%, China From 125% To 10%
New Delhi: The United States and China on Monday agreed to roll back tariffs on each other’s goods for an initial 90-day period in a bid to defuse the brewing trade war between the world’s two largest economies. Under the agreement, the US will reduce tariffs on Chinese goods from 145% to 30%, while China will slash its tariffs on American imports from 125% to 10%, according to a joint statement.
The two sides also agreed to establish “a mechanism to continue discussions about economic and trade relations”, led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. The tariff cuts mark a step back from the escalating trade tensions between the two countries that roiled financial markets worldwide in the preceding weeks and stoked fears of a global recession.
The detente is already rippling through markets: Hong Kong’s benchmark index jumped 3% on the news, while futures for the Dow Jones Industrial Average climbed more than 2%. S&P 500 futures rose nearly 3%, and Nasdaq Composite futures surged over 3.5%.
In addition to the tariff discussions, US officials also raised concerns about the flow of chemical ingredients used to manufacture fentanyl, a highly addictive opioid, from China. A 20% punitive tariff on Chinese exports, imposed earlier by Trump in response to what he called Beijing’s inaction on fentanyl trafficking, remains in force.
