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The United States and China have agreed to lower tariffs for 90 days. High tariffs levels had led to a virtual blockade of trade between the two nations.
This latest agreement is meant to reduce tension between the two countries and help the global economy.
After two days of talks in Geneva, the U.S. said it would cut tariffs on Chinese goods from 145% to 30%. In return, China will reduce its tariffs on U.S. products from 125% to 10%.
The talks were led by U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng. Both sides said the talks were open and useful. They also agreed to keep talking through a joint trade team.
President Trump called the deal a “total reset” and said it would help open Chinese markets to U.S. businesses. However, he added that a minimum 10% tariff would still stay in place.
The deal made stock markets go up around the world, and the U.S. dollar became stronger.
Experts say this is a good start, but it won’t fix all trade problems. Issues like fair access to markets and rules on intellectual property still need to be sorted out.
The 90-day deal gives both countries time to work toward a better, long-term agreement. However many problem areas and trade barriers remain. For example, since the Biden administration China has not been allowed to sell its BYD electric vehicles, Huawei phones, and certain drones in the USA.
Sources: CNN, BBC.
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