US Treasury Secretary Scott Bessent said on Monday that the US and China had reached a major deal in trade negotiations, which will result in a bilateral tariff cut, from May 14 for 90 days.
According to the deal, the US will reduce tariffs on Chinese products from 145% to 30% for 90 days, and China will slash tariffs on US products from 125% to 10% for 90 days.
Bessent announced the news at a press conference, declaring, "We have reached agreement on a 90-day halt and to significantly reduce the tariff levels. Both sides of the reciprocal tariffs will reduce their tariffs by 115%."
The talks also touched on other important matters, such as measures to solve the fentanyl epidemic, on which there was mutual agreement that there should be more cooperation. "Neither wants to decouple," Bessent went on to stress, highlighting the cooperative atmosphere of the talks.
After the tariff cuts, the two nations will set up a mechanism to keep their conversation going on more extensive economic and trade relations. The Chinese delegation for the talks will be headed by Vice Premier He Lifeng, while the US will be represented by Bessent and Jamieson Greer, the United States Trade Representative.
The negotiations can be held alternatively in China, the United States, or some other mutually convenient third party. The release added both parties may also hold working-level consultations on certain trade matters as needed.
Greer, addressing the media, played down issues of concerns over possible major differences between the two countries, saying, "The agreement we reached with our Chinese counterparts will cut the $1.2 trillion U.S. global goods trade deficit."
This was the first face-to-face meeting between top officials of the two nations since Donald Trump took office, during which a global trade war initiated by a sharp increase in US tariffs as part of his "America First" policy began.
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