WASHINGTON: In a key development signaling an easing of trade hostilities, the United States and China have agreed to scale back the majority of tariffs imposed on each other’s goods.
The deal follows a weekend of high-level negotiations in Switzerland.
The new agreement reduces the previously imposed reciprocal tariffs from 125% to just 10%.
However, U.S. tariffs targeting Chinese goods tied to fentanyl production will remain at 20%, leaving China’s total tariff exposure at 30%.
“This was a constructive set of discussions, and the setting in Lake Geneva helped foster a calm and collaborative atmosphere,” said U.S. Treasury Secretary Scott Bessent at a press briefing.
He also confirmed that both nations have committed to a 90-day pause on new tariffs, and will each reduce their existing tariff rates by 115 percentage points.
Your gateway to global news, insights, and stories that matter.
The deal follows a weekend of high-level negotiations in Switzerland.
The new agreement reduces the previously imposed reciprocal tariffs from 125% to just 10%.
However, U.S. tariffs targeting Chinese goods tied to fentanyl production will remain at 20%, leaving China’s total tariff exposure at 30%.
“This was a constructive set of discussions, and the setting in Lake Geneva helped foster a calm and collaborative atmosphere,” said U.S. Treasury Secretary Scott Bessent at a press briefing.
He also confirmed that both nations have committed to a 90-day pause on new tariffs, and will each reduce their existing tariff rates by 115 percentage points.
