Interim Relief in Ongoing Tariff Dispute
The United States and China decided to suspend their tariff hikes for 90 days. This came after the Switzerland high-level trade talks. The negotiations were part of the efforts to ease the tension following the imposition of heavy tariffs by both countries on one another.
Deal to Reduce Tariffs
US Secretary of Treasury Scott Besant gave his signature to the deal which will expire in 90 days. They did not waive all the duties set reciprocally (by the two countries) but these have been reduced to a great extent. Hence the next 90 days:
- US cut tariffs for China on 145% goods down to 30%
- China will reduce tariffs on US items from 125% to 10%
Background on the Tariff War
The trade conflict initially flared up with the US slapping tariffs on China. This move was one of many targeting various trading partners. China fought back by imposing higher tariffs on US goods. The actions impacted stock markets around the world and raised concerns about an impending economic slowdown.
A Short-Term Agreement
Last year, in the course of the trade talks, the delay was decided by both of the countries for a period of 90 days. The action is intended to provide space for both sides to devise a long-term solution. It also temporarily relieves companies and investors who have been hit by the rising trade tensions.
