U.S. and China agree to major 90-day easing of tariffs as talks progress
/ CBS News
The U.S. and China have agreed to a temporary but significant easing of the tariffs imposed over the last couple months, the country's said in a joint statement shared by the White House, heralding significant success in trade negotiations that ramped up over the weekend.
In the joint statement released early Monday morning, the two sides said they had agreed that ongoing "discussions have the potential to address the concerns of each side in their economic and trade relationship," and that "moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect," both parties had committed to a 90-day suspension of most of the levies imposed since early April.
"We have reached an agreement on a 90-day pause," U.S. Treasury Secretary Scott Bessent told reporters in Geneva, Switzerland, where he spent the weekend in meetings with Chinese counterparts. He said Washington and Beijing would reduce their reciprocal tariffs by 115 percentage points for three months to give the negotiations room to move forward.
Bessent said the temporary reductions would effectively reduce the level of U.S. tariffs still in place on Chinese goods to about 30%, while China was reducing its levies on American imports to 10%.
The White House's imposition of levies amounting to some 145% on all goods imported from China, and Beijing's retaliatory tariffs of 125% on American imports, had cast a long shadow over global financial markets as the world's two biggest economies spent the early spring appearing to entrench in a trade war.
"Both countries represented their national interest very well," Bessent said at the Monday news conference in Geneva, along with U.S. Trade Representative Jamieson Greer, according to the Reuters news agency. "We both have an interest in balanced trade, the U.S. will continue moving towards that."
Commodities and currency markets in Asia and beyond were buoyed significantly on the news of a breakthrough in the negotiations on Monday.
Speaking on Sunday, Bessent said there had been "substantial progress" in the sensitive talks with Chinese counterparts in Geneva, while Greer suggested an agreement had been reached but offered no hint at the details.
"It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as far as maybe thought," Greer told reporters on Sunday.
Tucker Reals is CBSNews.com's foreign editor, based in the CBS News London bureau. He has worked for CBS News since 2006, prior to which he worked for The Associated Press in Washington, D.C., and London.
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