Trump Announced The US And China Have Agreed To Stop Imposing More Tariffs On Each Other For 90 Days
The US will cut its tariffs on Chinese imports from 145% down to 30% while China will reduce its tariffs on US imports from 125% to 10%.
The US President Donald Trump has announced that the US and China have agreed to stop imposing more tariffs on each other for 90 days.
In February, Trump began imposing tariffs on China and other countries, including Canada, Mexico and the EU.
China is the second largest source of imports for the US and the primary manufacturer worldwide for cellphones, toys, computers and other products, according to the New York Times.
In March, Trump increased tariffs on Chinese goods to 20%, with China then retaliating by imposing a 15% tariff on some US products.
The two countries kept increasing tariffs on each other till April, when the US increased its tariffs on China to 145%, with China increasing its tariffs to 125%.
The tariff increases led to higher prices, disrupted supply chains, slowed economic growth and exports in both countries and also negatively affected the global economy, disrupting trade flows.
On May 12, Trump said in a statement that both countries agreed to reduce their tariffs by 115% for 90 days starting May 14 after successful negotiations in Geneva.
The US will cut its tariffs on Chinese imports from 145% down to 30% while China will reduce its tariffs on US imports from 125% to 10%.
During the 90-day period, the two countries will also discuss their economic and trade relations.
Trump said that the two countries have a “very good” relationship, saying that the US is not looking “to hurt China” and adding that he will be speaking with China’s president Xi Jinping at the end of the week to discuss more things.
Isha Jain
Sofia Hou
Isha Jain
