U.S.-China trade truce: Tariffs slashed as talks progress
U.S. Treasury Secretary Scott Bessent stated that the result of trade negotiations with China is the establishment of a mechanism to prevent escalation in bilateral relations. Over the weekend, U.S. and Chinese delegations agreed that beginning on Wednesday, both countries will reduce mutual tariffs by 115 percentage points for a 90-day period.
Bessent said during a meeting with journalists in Riyadh that the United States does not want a situation where trade ties between the world's two largest economies are severed. The American delegation, led by President Donald Trump, starts a four-day visit to the Middle East on Tuesday, with Saudi Arabia as the first stop.
The U.S. Treasury Secretary also conveyed hope that, in the future, trade relations between Washington and Beijing will progress without further tensions. Bessent added that the United States also anticipates more fruitful cooperation with other East Asian countries; he mentioned Japan, Taiwan, and Indonesia in this context.
According to the head of the U.S. Treasury, Trump's efforts aim to achieve the "economic rebalancing."
Starting on Wednesday, May 14, for 90 days, U.S. tariff rates on Chinese goods will be decreased to 30%, and Chinese tariffs on imports from the U.S. will be reduced to 10%. Beijing also promised to lift non-tariff restrictions imposed on the United States, such as those on the export of certain critical minerals.
Xi Jinping spoke for the first time since the announcement of the trade agreement with the U.S. on Monday. - There are no winners in a trade war - the Chinese leader emphasized during the opening of the China-Celac forum within the Caribbean Community of Latin American and Caribbean States. He added that "bullying and hegemony will only lead to self-isolation."
