The United States and China will suspend part of their punitive tariffs for 90 days, according to a joint US-China statement from Geneva . The suspension will take effect "by May 14," the statement said.
Specifically, by May 14, the United States will "modify the application of the additional ad valorem rate on customs duties of Chinese origin (including those from the special regions of Hong Kong and Macao), suspending 24 percentage points of that rate for an initial period of 90 days, while maintaining the remaining 10% ad valorem rate on such items."
China, for its part, will accordingly modify the application of the additional ad valorem rate on U.S. items, "suspending 24 percentage points of such rate for an initial period of 90 days while maintaining the remaining additional ad valorem rate of 10 percent on such items."
The United States, as clarified by US Treasury Secretary Scott Bessent, will reduce tariffs on China to 30% (previously they were 145%) while China will lower those on the United States to 10% (previously they were 125%).
After adopting the agreed measures, " the parties will establish a mechanism to continue discussions on economic and trade relations ."
The news has already led, shortly after the announcement, to significant increases in the main stock markets.
(Online Union)
