After a series of negotiations in Geneva, Switzerland, the US and Chinese governments have reached a deal in reducing the retaliatory tariffs they had imposed on each other.
According to a joint statement on the recent trade meeting between two parties, the US and China have agreed to cut their own respective tariffs levied against each other for an initial 90 days beginning on May 14. Consequently, the US and China will roll back their tariffs from 145 percent to 30 percent and from 125 percent to 10 percent, respectively.
In addition, the two parties will also establish a mechanism to continue discussions about economic and trade relations, led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.
The global markets have welcomed this development with great enthusiasm. In the US, the Dow index was set to open 2.1 percent higher, while futures in the S&P 500 and tech-heavy Nasdaq went up by 2.7 percent and 3.6 percent, respectively, while in Europe Germany’s DAX index and France’s CAC 40 were up 1.2 percent and one percent, respectively.