The US and China have agreed a breakthrough temporary cut to the tariffs they impose on each other’s exports.
Speaking in Geneva, US Treasury Secretary Scott Bessent said both countries would slash their reciprocal tariffs by 115 per cent for 90 days.
Bessent told reporters that ‘both sides showed great respect’ during their talks, and that ‘we both have an interest in balanced trade’.
The announcement came after both China and the US had held trade talks in Switzerland over the weekend, which Bessent had previously described as ‘productive and constructive’.
The crucial meeting was the first between the two countries since US President Donald Trump slapped steep tariffs against China on its goods entering America in January.
Trump had imposed a staggering 145 per cent tariff on Chinese imports, while Beijing retaliated with a 125 per cent levy on some US products.
The mega tariffs caused turmoil in the financial markets and sparked fears of a global recession, however, the US tariffs on Chinese imports will now be cut to 30 per cent for 90 days, while Chinese tariffs on US imports will be cut to 10 per cent for the same period of time.
The two sides also agreed to establish ‘a mechanism to continue discussions about economic and trade relations,’ led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, according to the statement.
US President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House on April 2, 2025, in Washington
‘These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties.
‘As required, the two sides may conduct working-level consultations on relevant economic and trade issues,’ it added.
The US side has also suggested that they have agreed a ‘very good mechanism’ to avoid unfortunate escalations with China over trade in future.
This is a breaking news story. More to follow.
