According to a joint statement published in Geneva, Switzerland, the US and China will temporarily reduce tariffs on each other's goods, in order to ease trade tensions and give the world's two largest economies another 3 months to resolve disagreements.
The total 145% US tariff on most Chinese imports will be reduced to 30%, including the rate related to fentanyl on May 14, while China's 125% tax on US goods will be reduced to 10%.
"We have had a very positive and productive discussion about the steps related to fentanyl. Both sides agreed that neither side wanted to part ways," said US Treasury Secretary Scott Bessent.
According to the joint statement, the parties will establish a mechanism to continue discussing economic and trade relations.
This announcement is a step towards cooling down the tariff war between the world's two leading economies. The two countries previously revealed that there had been "significant progress" in negotiations.
Trade representative Jamieson Greer emphasized that the US wants to have more balanced trade relations with China. The White House called the results a "commercial deal" in a May 11 statement.
