The United States and China, "recognizing the importance of economic and trade cooperation between the two countries," have agreed to temporarily reduce customs tariffs for a period of 90 days starting May 14. The relevant information is contained in a statement from the White House administration.
Previously, U.S. tariffs on certain categories of Chinese goods reached up to 145%, while Chinese tariffs on U.S. goods stood at 125%. According to U.S. Treasury Secretary Scott Bessent, during the Geneva negotiations, the parties agreed to mutually reduce tariffs by 115 percentage points. "Both sides recognized that no one is interested in severing economic ties," Bessent explained.
As a result, China will revert to a base 10% rate on U.S. imports, while the U.S. will impose a 30% tariff on Chinese goods. Over the three-month period, the countries intend to continue discussions on trade cooperation issues.
As reported by Bloomberg, news of the tariff reduction triggered a rise in Asian and European stock markets, with S&P 500 futures showing a 3% surge.
It is worth recalling that in early April, U.S. President Donald Trump announced the introduction of increased customs tariffs for the vast majority of countries.