US-China Trade Talks: Forex Factory Sees Tariff Rollback
The tariff rollback is expected to have a significant impact on the global economy, with the US and China being two of the world's largest trading nations. The agreement to establish a mechanism for continued discussions on economic and trade relations is also seen as a positive step towards resolving the trade dispute.
The US and China have agreed to significantly reduce tariffs on each other's goods for a 90-day period, with the US lowering its tariffs on Chinese goods from 145% to 30% and China cutting its levies on American imports from 125% to 10%.
The agreement was reached after marathon trade talks in Geneva, Switzerland, between top American and Chinese officials, including US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, and China's Vice Premier He Lifeng. The talks, which are aimed at defusing a trade war triggered by US President Donald Trump's tariff rollout, are expected to continue on Sunday.
The two sides have also agreed to establish a mechanism to continue discussions on economic and trade relations, with working-level consultations on relevant issues. Trump has hailed a "total reset" in US-China trade relations, praising the "very good" discussions, saying they were a "total reset negotiated in a friendly, but constructive, manner."
The talks come after weeks of growing tensions following Trump's tariff blitz starting in February, which has disrupted supply chains, unsettled financial markets, and stoked concerns about a global economic downturn. Washington is seeking to reduce its $295 billion goods trade deficit with Beijing and persuade China to renounce its mercantilist economic model.
Economic analysts have low expectations of a breakthrough, but the Swiss economy minister has said that the fact the talks are taking place is already a success. The agreement to roll back tariffs is seen as a positive step towards resolving the trade dispute between the two countries.