China and the United States have taken significant steps to ease ongoing trade tensions by releasing a joint statement following their economic and trade meeting in Geneva on Monday.
The two global powers have agreed to suspend a portion of the additional tariffs imposed on each other’s goods. For an initial period of 90 days, both countries will suspend 24 percentage points of the additional ad valorem duty rates, while retaining a 10 percent rate on affected products.
This move marks a positive shift in the bilateral economic relationship between China and the US, aiming to foster a sustainable, long-term, and mutually beneficial partnership. The actions are set to be implemented by May 14, 2025.
In addition to modifying tariffs, China and the US have committed to establishing a mechanism for continued discussions on economic and trade relations. The Chinese side will be represented by Vice Premier of the State Council He Lifeng. The US representatives will be Secretary of the Treasury Scott Bessent and United States Trade Representative Jamieson Greer.
These talks are expected to alternate between locations in China, the United States, or potentially a third country upon mutual agreement. Working-level consultations on relevant economic and trade issues will also be conducted as necessary.
The joint statement emphasizes the importance of mutual opening, continued communication, cooperation, and mutual respect. Both nations recognize the significance of their economic and trade relationship not only to themselves but also to the global economy.
This agreement comes after a period of heightened trade tensions, signaling a willingness from both sides to address concerns and work towards a more harmonious economic partnership.
