A significant turning point has been observed in the ongoing trade dispute between the United States and China. According to Bloomberg, the leadership of the two countries has reached an agreement to reduce mutual customs tariffs for a period of 90 days.
Representatives from both countries announced a joint statement on cooperation in Geneva. It emphasized that the USA and China aim to ease tensions in their relations and provide additional time to resolve economic conflicts.
According to the terms of the agreement, the 145% customs tariffs imposed by the USA on Chinese imports, including products like fentanyl, will be reduced to 30%. Additionally, Beijing has committed to lowering the 125% tariffs imposed on US goods by up to 10% in response.
The two countries agreed to create a special mechanism to discuss their trade and economic relations. The negotiations will be led by China's Deputy Prime Minister He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamison Greer.
Negotiations will be held alternately in the USA, China, or a third country agreed upon by both states. If necessary, the parties will conduct additional consultations on economic issues at the working group level.
History of Trump's trade dispute
It is worth noting that on April 2, US President Donald Trump set a 10% basic customs tariff for all countries. However, these tariffs varied based on each country's trade balance with the USA. Due to a significant deficit in trade with China, the USA raised tariffs on this country by 34%.
In response, Beijing imposed similar tariffs on American goods. Following this, the US leader threatened to raise tariffs to 50% if China did not back down from its retaliatory measures. As a result, tariffs increased to 104%, and in response, China raised tariffs on American goods to 84%.
Trump took even stricter measures, increasing tariffs on Chinese goods to 125% and later raising this figure to 145%. China also raised its customs tariffs to 125% and called on the USA to abandon "reciprocal tariffs." Chinese leader Xi Jinping noted that "no country will win from a trade war."
After a prolonged trade dispute, the two countries finally decided to come to the negotiating table, achieving significant agreements in this regard.
The Zamin.uz editorial team closely monitors the economic relations between the USA and China, regularly delivering updates to its readers. Stay with us!
