Washington,Ā May 13: The US and China have arrived at an agreement that they will withdraw their previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days.In the meantime, China will impose 10 per cent tariffs on US goods, and the US will tax Chinese goods at about 30 per cent.
The understanding was arrived at recognizing the importance of their bilateral economic and trade relationship to both countries and the global economy, as per a joint statement on Monday.
Both countries recognised the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship.
Both countries reflected on their recent discussions and believed that continued discussions have the potential to address each side concerns in their economic and trade relationship.
Going ahead, the two countries will establish a mechanism to continue discussions about economic and trade relations.
The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the US side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” the joint statement added.
US President Donald Trump had imposed reciprocal tariffs on dozens of countries with which the US has a trade deficit. Later, President Trump decided to pause the tariffs for 90 days after many countries initiated talks with the US administration for a trade deal. In these 90 days starting April 9, President Trump imposes a 10 per cent baseline tariff on all countries.
For China, Trump had indicated that the tariffs may go up to as high as 245 per cent. For the US, Chinese tariffs were at 125 per cent.
Since assuming office for his second term, President Trump has reiterated his stance on tariff reciprocity, emphasising that the United States will match tariffs imposed by other countries, including India, to ensure fair trade.