US and China finally come to an agreement

The US and China have reached an agreement to pause tariffs for 90 days, following negotiations led by US Treasury Scott Bessent. The deal comes after a period of heightened tensions, sparked when former President Donald Trump declared April 2 as “Liberation Day” and imposed tariffs on multiple countries, with China facing some of the highest rates at 145 percent. In response, China imposed counter-tariffs of up to 125 percent. The pause, starting on May 14, will see both countries reduce their reciprocal tariffs by 115 percent, bringing them down to 10 percent and 30 percent, respectively. However, US tariffs related to illegal fentanyl trade with China will remain in place.

Bessent expressed optimism about the agreement, emphasizing the commitment to balanced trade. US trade representative Jamieson Greer noted that both nations would continue collaborating on fentanyl issues. China’s Vice Premier He Lifeng described the negotiations as constructive, and Beijing’s ministry of commerce highlighted a spirit of openness and cooperation. Both sides plan to maintain discussions to improve economic and trade relations, aiming to prevent economic decoupling.