Landmark US‑China tariff reduction pact eases trade tensions
U.S. Treasury Secretary Scott Bessent announced that the outcome of trade negotiations with China is the creation of a mechanism to prevent escalation in bilateral relations. Over the weekend, U.S. and Chinese delegations agreed that starting on Wednesday, both countries will reduce mutual tariffs by 115 points for 90 days.
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, begins a four-day visit to the Middle East on Tuesday, with Saudi Arabia as the first stop.
The U.S. Treasury Secretary also expressed hopes that in future, trade relations between Washington and Beijing will develop without further tensions. Bessent added that the United States also hopes for continued fruitful cooperation with other East Asian countries; in this context, he mentioned Japan, Taiwan, and Indonesia.
In the opinion of the head of the U.S. Treasury, Trump's actions are aimed at the "economic rebalancing."
From Wednesday, 14 May, for 90 days, U.S. tariff rates on Chinese goods will be reduced to 30%, and Chinese tariffs on imports from the U.S. will be lowered to 10%. Beijing also committed to lifting non-tariff restrictions imposed on the United States, such as restrictions 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 - said the Chinese leader 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."
