TAIPIEI, TAIWAN-The United States and China agreed on Monday to temporarily suspend most prices on the other's products after a weekend of marathon trade negotiations in Geneva, Switzerland, by officials from the two largest economies in the world, during which the two parties praised “substantial progress”.
On May 14, the United States will temporarily reduce its prices on Chinese products from 145% to 30%, while China will reduce its samples from American imports from 125% to 10%, according to the joint press release. The 20% Washington rights on Chinese imports relating to fentanyl will remain in place.
The two parties recognize “the importance of a sustainable economic and commercial relationship, long-term, long-term and mutually beneficial,” they said in the press release.
The two parties also agreed to establish “a mechanism to continue discussions on economic and commercial relations”, led by Chinese Deputy Prime Minister, He Lifeng and the Secretary of the US Treasury, Scott Bessent as well as the American commercial representative Jamieson Greer, according to the press release.
“We had very productive discussions and I believe that the place here in Lake Geneva, added great equanimity to what was a very positive process,” said Bessent at a press conference.
“We have concluded an agreement on a 90-day break and moved considerably in the rate levels. The two parties on the reciprocal rates will move their tariffs by 115%,” he added.
Investors were supported by the news of the suspected price. Dow Futures jumped more than 2%, while the U&P 500 term contracts increased by almost 3%, and the composite term contracts of the Nasdaq Heach Nasdaq increased by more than 3.5%during the negotiations of the Asian afternoon. Asian markets were also higher, the Hang Kong Hang Seng index earning more than 3%.
Before Geneva negotiations, speculation on American-Chinese trade negotiations were riveted, the two parties sending mixed signals.
The Trump administration has publicly maintained a conflicting tone, President Donald Trump repeatedly suggesting that China had “cheated on the United States for decades” and warning that only a “complete overhaul” of commercial terms would be acceptable.
Meanwhile, Chinese officials referred to Backchannel communications and expressed a desire to negotiate, but only if Washington made what they called “unjustified” prices.
In February, Trump imposed a 10% rate on all Chinese imports, citing national security and the fentanyl crisis. He accused China of not slowing down the fentanyl flow and its precursors in the United States, which, according to him, fueled a fatal opioid epidemic.
China responded rapidly with 10 to 15% prices on American energy and agricultural products, American -list American companies and limited exports of critical minerals.
In the following months, both parties increased spectacularly – American prices reached 145%, and China reached 125%, as well as other non -tariff reprisals such as Tiktok's cessation of negotiations and the reduction of rare land exports, disturbing world trade.
Under the direction of Kiana Duncan.