Geneva, May 12 (Reuters) – The US and China said Monday they have agreed to a contract that cuts mutual tariffs for now as the world’s two biggest economies are trying to disrupt global outlook and end a trade war that has set financial markets dominated.
After talks with Chinese officials in Geneva, U.S. Treasury Secretary Scott Bescent, Treasury Secretary, has both sides agreed to a 90-day suspension of measures, and tariffs will reach 10% if they exceed 100 percent points.
“Both countries represented their national interests very well,” Bescent said. “We both have an interest in balanced trade. The US will continue to move towards that.”
Bescent was talking with US trade representative Jamieson Greer after a weekend cooperation. In the discussion, both sides welcomed progress by narrowing the differences.
The Geneva conference was the first face-to-face interaction between senior US Americans and Chinese economic officials since US President Donald Trump returned to power and launched a global tariff blitz, imposing particularly large obligations on China.
Since taking office in January, Trump has hiked 145% of the tariffs paid by US importers on goods from China. He also imposed the obligations he imposed on many Chinese products during his first term, as well as the Biden administration’s obligations.
China fought back by placing export curbs on several rare earth elements, placing export curbs on those essential to US weapons and electronic consumer goods manufacturers, and increasing tariffs on US goods to 125%.
The tariff dispute has halted nearly $600 billion in two-way trade, disrupted supply chains, caused stag horrors and several layoffs.
Financial markets are looking for signs of a trade war thawing, with futures from Wall Street stocks climbing, and Dollar, who faced off a safe buddy on Monday, turned into a safe shelter as he hoped the global recession would be averted.
(Dave Graham, report by Emma Farge and Olivia Le Podevinette)
