US and China Agree to 90-Day Suspension of Additional Trade Tariffs

The US and China have reached a temporary agreement to suspend the application of additional tariffs in bilateral trade for 90 days. Representatives from both countries note that this step will stabilize economic relations and create conditions for further negotiations.

This is reported by AgroReview

Reduction of Tariffs and Lifting of Restrictions

According to the agreements reached, the United States will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on American products from 125% to 10%. Additionally, Beijing will lift some non-tariff restrictions that have been in place since April. The base tariff rate in the US will remain at 10%, while 24 additional percentage points of tariffs will be suspended for the duration of the agreement.

New Format for Trade Negotiations

The agreement was reached after two rounds of negotiations held in Geneva on May 10 and 11. To further discuss trade issues, the parties decided to establish a permanent dialogue mechanism. The US delegation will be led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, while the Chinese delegation will be headed by Vice Premier He Lifeng. Meetings will alternate between the US, China, or a neutral location.

“Stock markets reacted positively to the agreement between the US and China, with futures for the Dow jumping more than 2%, the S&P 500 rising nearly 3%, and the Nasdaq Composite increasing by 3.5%. Asian markets also saw gains, with the Hong Kong Hang Seng index climbing over 3%.”

Market participants immediately reacted positively to the news of the temporary agreement, with major stock indices in the US and Asia showing significant increases.