Tariff Truce: US and China Slash Duties After Breakthrough Talks
The United States and China have agreed to significantly reduce mutual tariffs for a period of 90 days, following high-level negotiations held in Switzerland. US Treasury Secretary Scott Besant stated that both nations have rescinded nearly 85% of the punitive tariffs previously declared during what they termed their "Liberation Day" announcements. As per the revised arrangement, the United States will impose a 30% tariff while China will apply a 10% rate. The agreement was first reported by the BBC.
The breakthrough is being viewed as a major de-escalation in the ongoing trade war between the world's two largest economies. Last month, President Trump had imposed tariffs as high as 145% on Chinese imports, prompting a swift retaliatory response from Beijing.
Global markets reacted positively to the development. The Hang Seng Index rose by 3%, while European markets also showed notable gains. Despite the easing, the United States will maintain an additional 20% tariff on certain Chinese goods in an effort to curb the illicit trade of fentanyl.
In a further step toward long-term economic cooperation, both countries announced plans to establish a joint platform for continued trade dialogue.
