The authorities of both countries announce that they will temporarily reduce taxes on imports of 115%. American rates on Chinese products should drop from 145% to 30%, while China will reduce from 125% to 10% that the United States and China have announced an agreement on Monday (12/05) to reduce mutual import rates for a period of 90 days.
The authorities of both countries met this weekend in Geneva to try to bring relief to the commercial war triggered by the import rates imposed by the government of the President of the United States Donald Trump. The measures generated strong tensions in the global economy and have shaken financial markets from all over the world.
On Monday, the U.S. Treasury Secretary Scott Besent told Geneva that both sides reached a 90 -day break and a reduction in mutual rates of 115%.
Therefore, US rates against China should remain at 30% in the next 90 days. Already those from China against the United States, 10%.
This is a significant reduction in commercial tensions that have worsened in recent weeks. The United States have increased taxes on Chinese products to 145%, including a punitive rate of 20% added to combat Fenanil imports in the United States. Beijing reacted with the imposition of rates of 125% on American imports.
“Franco and constructive dialogue”
The meetings in Geneva were the first face to face interactions between the US and Chinese economic authorities since Trump returned to power in January and began the imposition of rates on international commercial partners, mainly reaching China.
Besent said Monday that “both sides showed great respect” during the negotiations. “Both countries represented their national interests very well,” said the secretary. “We are interested in a balanced trade and the United States will continue to walk towards it.”
This Sunday, Chinese representatives described negotiations as a “Franco, deep and constructive dialogue”. The Chinese vice-minister, He Lifeng, said that both parties have agreed to “establish a consultation mechanism” for new discussions on commercial and economic issues.
The mutual increase in rates caused enormous damage to bilateral trade, which last year exceeded $ 660 billion ($ 3.7 trillion).
Fears of global recession
Last week, which marked the 100 days of the second mandate Trump, his government announced that the American economy retired to an annual rate of 0.3% in the first quarter of 2025, the largest reduction since 2022.
The American bag collapsed and Trump quickly tried to blame the frustrating result in his predecessor, Joe Biden, doing little case of the chaotic start of his second term, with tariff war, sudden changes in government policies and layoffs.
In reacting to Trump’s rates, Beijing has imposed restrictions export of some rare earth elements, vital for US weapons and electronic consumption assets and has raised rates on numerous American products.
Financial markets are aware of the signs of relief in the commercial war, while negotiations between the United States and China increase the hope that a global recession will be avoided.
RC (Reuters, AP)
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
