US And China Reach Significant Agreement To Slash Tariffs By 115 Percent In Geneva Talks

The United States and China have agreed to significantly reduce tariffs, according to US Treasury Secretary Scott Bessent. Announced in Geneva, the agreement will lower tariffs by 115 percent, bringing them down to a 10 percent rate. This decision affects reciprocal tariffs that were initially imposed in April.

During a press conference in Geneva, Bessent highlighted the mutual respect shown during discussions. "Both sides showed great respect," he stated. He also mentioned that both nations effectively represented their national interests. The agreement includes a 90-day pause on additional measures, allowing tariffs to settle at a 10 percent baseline.

Bessent stressed the importance of balanced trade between the two countries. He noted that increasing trade with China is contingent upon better market access for US products. Addressing the trade deficit remains a priority for the US, as previous administrations did not adequately tackle this issue. Progress can continue as long as both parties act in good faith.

China has agreed to impose a 10 percent tariff on US goods while suspending an additional 24 percent in duties for 90 days. This move aligns with efforts to rebalance trade relations and open up further opportunities for dialogue.

US Trade Representative Jamieson Greer explained that President Donald Trump initially imposed tariffs on April 2nd to address a $1.2 trillion trade deficit, which had increased by 42 percent over previous years. China's retaliatory actions created significant barriers, leading the US to raise its tariff rate to 125 percent.

Greer acknowledged that re-establishing communication channels was crucial during the Geneva talks. Both sides worked constructively to rebuild trust and facilitate further discussions, aiming to mend relations strained under previous administrations.

The recent agreement marks a step towards improving trade relations between the United States and China. By reducing tariffs and pausing additional measures, both countries aim to foster more balanced trade practices and enhance cooperation moving forward.

With inputs from WAM