Geneva, Monday—In a significant move to ease escalating trade tensions, the Chinese mainland and the United States announced a series of tariff modifications following a two-day high-level meeting on economic and trade affairs.
The joint statement emphasized the importance of the bilateral economic and trade relationship between the two nations, recognizing its impact on both countries and the global economy. Both sides stressed the need for a sustainable, long-term, and mutually beneficial economic and trade partnership.
According to the agreement, the United States will implement a 90-day suspension on 24 percentage points of the additional ad valorem duty rates on articles from the Chinese mainland, including those from the Hong Kong Special Administrative Region and the Macao Special Administrative Region, starting from April 2. The remaining rate of 10 percent on these articles will be retained. Additionally, the U.S. will remove the additional tariff rates on imports from the Chinese mainland announced on April 8 and 9.
Previously, the United States had increased reciprocal tariff rates on the Chinese mainland to 84 percent through Executive Order 14259 issued on April 8, followed by a hike to 125 percent the next day through another executive order. An ad valorem tax is based on the assessed value of goods or services.
In response, the Chinese mainland will adjust its additional ad valorem duty rates on U.S. goods as outlined in the Announcement of the Customs Tariff Commission of the State Council No. 4 of 2023. This involves suspending 24 percentage points of the rate for an initial period of 90 days while retaining the remaining additional rate of 10 percent on those goods. China will also remove the modified additional ad valorem rates imposed by announcements No. 5 and No. 6 issued on April 9 and 11, respectively.
Furthermore, the Chinese mainland will adopt necessary administrative measures to suspend or eliminate non-tariff countermeasures against the United States that have been in place since April 2, 2023. Both countries have committed to implementing these actions by May 14.
The two sides agreed to establish a mechanism for ongoing discussions on economic and trade relations. These meetings may be held alternately in the Chinese mainland, the United States, or a third country upon mutual agreement, according to the statement.
