US, China Agree to Temporarily Lower Tariffs
The U.S. and China agreed to temporarily drop certain tariffs, during negotiations in Switzerland May 10-11, and plan to continue talks through a new trade dialogue mechanism, both countries said.
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Both countries said they’re cutting tariffs for 90 days. The U.S. is reducing its total International Emergency Economic Powers Act duties on China from 145% to 30%, while China is lowering its tariffs from 125% to 10%, cutting most of the retaliatory duties the country has imposed in recent weeks in response to the Trump administration tariffs. China’s Ministry of Commerce also said it will “suspend or cancel non-tariff countermeasures” imposed against the U.S., according to an unofficial translation, but didn’t provide more details.
The two sides had a “candid, in-depth and constructive communication,” the ministry said. Although the U.S. duties have “seriously damaged normal bilateral economic and trade exchanges” between the two countries, China said they made progress toward resolving their “differences.”
“It is hoped that the United States will continue to work with China on the basis of this meeting, thoroughly correct the wrong practice of unilateral tariff increases” and “jointly inject more certainty and stability into the world economy,” China said.
The two sides agreed to establish a “mechanism” to continue trade talks, the White House said. “Today’s agreement works toward addressing these imbalances to deliver real, lasting benefits to American workers, farmers, and businesses.”