World trade: “Donald Trump is backtracking”

The US and China have surprisingly reached an agreement. High tariffs are to be reduced for 90 days. Will this be enough to restore predictability to the global economy?

The tariff dispute sparked by US President Donald Trump has taken another turn. Following negotiations over the weekend in Geneva, the US and China issued a joint statement announcing that they would reduce their mutual tariffs , which were only imposed in April, for an initial period of 90 days. Tariffs on imports of goods from China into the US would thus be reduced from the current 145 percent to 30 percent, and tariffs on imports from the US to China from 125 percent to 10 percent. They also intend to establish mechanisms for further negotiations on economic and trade issues. Further meetings in the US, China, or a third country are planned.