GENEVA — According to published reports, the United States and China have agreed to temporarily cut reciprocal tariffs in a deal that surpassed expectations as the world's two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.
The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the two countries said on Monday. The new measures are effective for 90 days.
"Both countries represented their national interest very well," U.S. Treasury Secretary Scott Bessent said after talks with Chinese officials here. "We both have an interest in balanced trade, the U.S. will continue moving towards that."
Bessent said the deal did not include sector-specific tariffs and that the U.S. would continue strategic rebalancing in areas including medicines, semiconductors and steel where it had identified supply chain vulnerabilities.
National Retail Federation president and CEO Matthew Shay said this regarding the Trump administration’s announcement: “We applaud the U.S. and China for agreeing to a 90-day pause on the 125% reciprocal and retaliatory tariffs. We are encouraged by these constructive negotiations, which provide for a significant de-escalation in the current trade relationship.
“This temporary pause is a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season. And over the long term, this lays the foundation for substantial progress in achieving truly fair and balanced trade relationships with both China and our other trade partners around the world.
“We urge the administration and our Chinese trade partners to continue discussions to address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies.”
