China and the US announce a 90-day suspension of tariffs amid ongoing trade negotiations.

In a significant development, China and the United States have decided to suspend certain trade tariffs as they seek to ease tensions stemming from their ongoing trade conflict. The joint statement issued on Monday followed two days of productive negotiations held in Geneva, Switzerland, indicating a positive shift in the relationship between the two largest economies in the world.

This agreement marks a pivotal moment after a series of heavy tariffs were imposed during former President Donald Trump’s administration, prompted by a focus on a nationalist economic strategy. The newly reached consensus aims to foster a mutually beneficial dialogue that recognizes the critical nature of bilateral trade relationships, not only for the respective economies but also for the global economic landscape.

The announcement led to an immediate positive response in global markets, with stock exchanges in Hong Kong, the United States, and Europe seeing gains. Both countries emphasized the importance of maintaining open lines of communication, cooperation, and mutual respect as they move forward.

Under the terms of the agreement, the United States will temporarily suspend an additional 24 percent ad valorem tariff, which is a tax calculated based on the value of goods, for a period of 90 days. This will leave a 10 percent tariff rate in effect. In parallel, China is expected to reduce its tariffs on US imports similarly. This harmonious approach exemplifies the commitment both nations have to easing restrictions that have hindered economic progress.

Additionally, Washington plans to roll back tariffs imposed via two executive orders from April, affecting various imports from China, including those from Hong Kong and Macau. In response, Beijing will suspend retaliatory tariffs and other non-tariff measures against US goods.

Both nations have established a framework for future discussions to continue addressing trade relations, appointing high-level officials to lead these talks. China’s Vice Premier He Lifeng will spearhead negotiations for his country, while US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will represent the United States. Both delegations expressed a strong desire to avoid being “decoupled,” viewing the existing tariffs as detrimental to their economic interdependence.

This agreement comes in the wake of broader efforts by the US to reset trade dynamics, including a recent framework for a trade agreement aimed at decreasing tariffs on imports from the United Kingdom. As the international community watches closely, the targeted approach taken by both nations signals hope for a more stable and cooperative economic future.

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