As part of a two -day conversation marathon in Switzerland, the United States and China have reached an agreement on the partial suspension of mutual punitive rates. The measures must apply for 90 days and will remain in force on 14 May. The aim of the agreement is to relax the trade relationships between the two largest economies in the world for years.
In particular, the United States came to reduce its mutual rates to Chinese from 125 to 10 percent. In exchange, China announced that it also reduces its own rates for the entry of the US from 125 to 10 percent. Other measures, such as American rates related to the fentanyl crisis, remain upright.
Agreement must restart
In a joint explanation, both parties confirmed that they wanted to create a permanent mechanism to continue the economic and trade discussions. The last agreement is the result of intensive negotiations and is intended to make a restart in the bilateral relationship possible.
The customs flict had grown enormously during the second term of US President Donald Trump. At that time, the United States introduced criminal rates of 145 percent in Chinese products, after which China responded to American goods with 125 percent rates. As a result, large parts of the bilateral trade fell, which taxed both the China export sector and caused extra inflation pressure in the US.
After completing the conversations in Geneva, the American negotiator Greer spoke about a “deal”, his Chinese colleague that he lifenged a “series of important competitions”. The White House described the agreement in a message as a “China Trade Agreement in Geneva”, but without giving further details.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
