Why it matters:
The easing of tariffs could provide much-needed relief to businesses and consumers in both countries, potentially stabilizing global markets and reducing inflationary pressures. It also signals a willingness from both nations to engage in constructive dialogue, which could lead to a more sustainable resolution of trade issues.
The big picture:
The trade war between the U.S. and China has been a major source of economic tension, impacting global supply chains and trade dynamics. By agreeing to lower tariffs, both countries are taking a step back from escalating their trade disputes, which have had far-reaching consequences for the global economy.
What it's saying:
The White House stated, "Both sides will also set up a framework for further talks, following recent negotiations in Geneva."
Key points:
- China will reduce tariffs on U.S. goods from 125% to 10%.
- The U.S. will lower tariffs on Chinese goods from 145% to 30%.
- The agreement is set for 90 days, during which further negotiations will occur.
This 90-day truce aims to foster dialogue and pave the way for future negotiations.
Go deeper:
Trump Retreats From Trade War With China; Tariffs Will Be Reduced
Zohre Khazaee
