The United States and China agreed a contract that will significantly reduce the tariffs of imports or taxes, both parties imposed each other for a period of 90 days.
U.S. Treasury Minister Scott Bensent said both countries would reduce their reciprocal tariffs by 115% by 90%.
The announcement came after the two countries held intensive talks in Switzerland during the weekend.
It was the first meeting of the two countries since US President Donald Trump collected the steep tariff against China on his goods entering America in January.
President Trump imposed a tariff of 145% in Chinese imports, while Beijing responded with 125% imposed on some American goods.
However, US tariffs in Chinese imports will now be reduced to 30% in 90 days, while Chinese tariffs on American imports will reduce to 10% for the same period.
American measures continue to include an additional component whose goal is to put the Peking to do more to combat illegal trade in Fentanil, a powerful opioid drug.
But American officials said that they were positively surprised China’s readiness to deal with the problem.
“Both countries were very well represented by their national interest,” Bessent said.
“We both have interest in a balanced store, the United States will continue to move towards.”
When the tariffs imposed were imposed, it caused him in the financial markets and caused fears from the global recession.
The news about pausing the tariff led to jump in stock markets.
The Benchmark Hong Kong Hange Seng Index jumped on the announcement, ending the day in an increase of 3%. The Chinese Shenghai composite index closed before they kicked out the details about the agreement, and ended 0.8% higher.
European stocks have opened larger and early indications that the main American markets in America opened 2-3%.
2025-05-12 07:59:00
