The United States and China have decided to stop the "tariff war" against each other

The ongoing trade dispute between the United States and China has taken a significant turn. Bloomberg reports that the leaders of the two countries have reached an agreement to reduce their tariffs for 90 days.

Representatives of the two countries issued a joint statement on cooperation in Geneva. It states that the United States and China aim to ease tensions in their relations and provide additional time to resolve their economic differences.

Under the terms of the agreement, the 145 percent tariffs imposed by the United States on Chinese imports, including on products such as fentanyl, will be reduced to 30 percent. Beijing also pledged to reduce its 125 percent tariffs on US goods to 10 percent in response.

The two countries agreed to create a special mechanism to discuss their trade and economic relations. The talks will be led by Chinese Vice Premier He Lifen, US Treasury Secretary Scott Bessant and US Trade Representative Jamieson Greer.

The talks will be held alternately in the US, China or a third country agreed upon by the two countries. If necessary, the parties will hold additional consultations on economic issues at the working group level.

The history of Trump's trade conflict

As a reminder, on April 2, US President Donald Trump set a basic tariff of 10% for all countries. However, these tariffs changed depending on the trade balance of each country with the US. Due to the large trade deficit with China, America increased the tariffs imposed on this country by 34%.

Beijing also imposed the same amount of tariffs on American goods in response. After that, the US president threatened to raise the tariffs to 50% if China did not abandon its countermeasures. As a result, tariffs rose to 104 percent, and China responded by raising tariffs on American goods to 84 percent.

Trump took even more drastic measures, raising tariffs on Chinese goods to 125 percent, and later increased this figure to 145 percent. China, in turn, raised its tariffs to 125 percent and called on the United States to abandon "mutual tariffs." Chinese President Xi Jinping noted that "no country will win a tariff war."

After a long trade dispute, the two countries finally decided to sit down at the negotiating table and important agreements were reached in this regard.

Zamin.uz editorial staff closely monitors economic relations between the United States and China and regularly provides its readers with news. Stay with us! Read 'Zamin' on Telegram!