President Doanld Trump's demand that goods imported from China be hit with a 145 percent tariff disintegrated after a major deal was reached in Geneva, according to the New York Times,
The amount the U.S. charges has now plummeted to 30 percent — with both China agreeing to 10 percent for U.S. goods. The cuts will be in place for 90 days.
In a statement, the countries agreed to continue negotiations during that period.
The United States would reduce the tariff on Chinese imports to 30 percent from its current 145 percent.
China had imposed a 125 percent import duty on American goods.
The U.S. Treasury Secretary Scott Bessent said, “The consensus from both delegations is that neither side wanted a decoupling.”
The Times reports, “Even a temporary reprieve from the shockingly high tariffs is cause for celebration for businesses in both countries. But the tariffs’ repercussions will linger.”
Zhiwei Zhang, the president and chief economist of Pinpoint Asset Management, an investment firm in Hong Kong, spoke with the outlet and called the agreement a “good starting point” for both countries.
“From China’s perspective, the outcome of this meeting is a success, as China took a tough stance on the U.S. threat of high tariffs and eventually managed to get the tariffs down significantly without making concessions,” he said.
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An initial 20 percent tariff to Chinese exports remains in effect. President Trump initially added the tariff bump because he claimed the country is not doing enough to stop the flow of fentanyl to the United States.
Bessent said the Chinese now “understood the magnitude” of U.S.' fentanyl crisis.