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US and China agree to slash tariffs for 90 days | US and China agree to slash tariffs for 90 days |
(32 minutes later) | |
The US and China have agreed a deal that will significantly cut the import tariffs, or taxes, both sides have imposed on one another for a 90-day period. | |
US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days. | US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days. |
The announcement came after the two countries held intensive talks in Switzerland over the weekend. | |
It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January. | It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January. |
President Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods. | |
However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time. | However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time. |
The US measures still include an extra component aimed at putting pressure on Beijing to do more to curb the illegal trade in fentanyl, a powerful opioid drug. | |
But US officials said they had been positively surprised by the willingness of China to deal with the problem. | |
"Both countries represented their national interest very well," Bessent said. | |
"We both have an interest in balanced trade, the US will continue moving towards that." | |
When the original tariffs were imposed it caused turmoil in the financial markets and sparked fears of a global recession. | |
News of the pausing of the tariffs led to a rebound on stock markets. | |
Hong Kong's benchmark Hang Seng Index jumped on the announcement, ending the day up 3%. China's Shanghai Composite Index had closed before details of the deal came out, and ended 0.8% higher. | |
European stocks opened higher and early indications were that the main US stock markets will open up by 2-3%. |