A sudden agreement that strengthens global markets
In a surprise step, the United States and China today reached an agreement to reduce customs duties imposed on the goods of each of them for a large percentage of 90 days, which led to the support of global markets.
Intensive talks lead to a historical agreement
The agreement was announced in a joint statement after a weekend of the intensive negotiations that took place in Geneva, Switzerland, between officials of the two largest economies in the world, as the two sides referred to “great progress” in the talks.
Reducing customs duties between the two sides
By May 14, the United States will reduce customs duties on Chinese goods from 145% to 30%, while China will reduce the fees on American imports from 125% to 10%, according to the joint statement.
A new mechanism for continuing negotiations
The two parties also agreed to create a “mechanism to continue discussions on economic and commercial relations”, as it will be led by Chinese Deputy Prime Minister Leving, US Treasury Secretary Scott Bessent, and American Trade Representative Jameson Jarir, according to the statement.
Future negotiation tours
According to the agreement, these discussions may take place alternately in China and the United States or in a third country if it is agreed by the two parties. The two parties can also conduct work consultations on relevant economic and commercial issues if necessary.
