Geneva: US Treasury Secretary Scott Bessent announced that the United States and China have reached an agreement to reduce tariffs by 115 percent, bringing them down to 10 percent. The agreement pertains to reciprocal tariffs imposed in April.
According to Emirates News Agency, Bessent, speaking to the media after trade talks in Geneva, stated that the two sides had agreed on a 90-day pause on measures, with tariffs set to decrease by over 100 percentage points to achieve a 10 percent baseline rate. Bessent remarked that both nations conducted their discussions with mutual respect and effectively represented their national interests.
The US Treasury Secretary highlighted the United States' intention to increase trade with China, contingent upon greater market access for US goods. Bessent identified rebalancing the trade deficit as a priority, a challenge that previous administrations had not addressed. He expressed optimism that, with good faith, both countries could continue to make progress.
Bessent further confirmed that China would impose a 10 percent tariff on US goods and suspend an additional 24 percent in duties for 90 days. This temporary suspension is part of the broader agreement reached between the two economic giants.
In the same press conference, US Trade Representative Jamieson Greer explained that President Donald Trump had initially imposed the tariffs on April 2 to tackle the trade deficit, which had escalated to $1.2 trillion by the end of the previous year-a 42 percent increase from prior years. Greer noted that China's retaliatory tariffs and other measures effectively created a blockade, leading the US to raise its tariff rate to 125 percent.
Greer also acknowledged the challenges of restoring communication channels that had been strained under the previous administration. He emphasized that both sides worked constructively to rebuild trust and open the door to further dialogue.
