Both nations underlined “the importance of a sustainable bilateral economic and commercial relationship in the long term and mutually beneficial”, highlighting their willingness to move forward “in a spirit of openness, cooperation and mutual respect.”
United States and China They announced one Temporary and reciprocal discount of tariffs for a period of 90 days, While they continue negotiating a broader commercial agreement. The measure, which seeks to relieve tensions between the two main economies of the world, includes a drastic reduction of current tariffs.
According to the joint statement, Combined 145% tariffs that the United States applies to most imports from China “Including fentanyl -related products— They will be reduced to 30% before May 14. On the other hand, China will decrease its 125% tariffs on US goods to 10%.
Both nations underlined “the importance of a sustainable bilateral economic and commercial relationship in the long term and mutually beneficial”, highlighting their willingness to move forward “in a spirit of openness, cooperation and mutual respect.”
As part of the agreement, a Mechanism of economic and commercial dialogue led by He Lifeng (VicePrimer Minister of the Council of State of China), Scott Besent (Secretary of the US Treasury) and Jamieson Gerr (American commercial representative). These conversations will be held alternately in China, the United States or in a third country, according to the parties, and They can be complemented with technical meetings as necessary.
At a press conference offered on Monday, the US Treasury Secretary, Scott Besent, described the meeting held over the weekend in Switzerland as “very productive” and confirmed the agreement for a “90 -day pause and a substantial reduction of reciprocal tariffs by 115%.”
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Market reaction
The announcement was well received by the markets. Dilin Wu, Pepperstone research strategist, stressed that “the appetite for risk rebounded drastically” thanks to unexpected advance in negotiations, which relieved concern about the profitability of companies and commercial uncertainty.
Chris Beauchamp, chief market analyst at IG, said that although it is not a definitive agreement, “marks the beginning of new conversations that, for now, will keep investors quietly.”
Source: Ambito
