In a surprise move that sparked a wave of optimism in global markets, the United States and China announced a historic agreement to significantly and temporarily reduce tariffs on each other's imports for an initial 90 days, while establishing a sustainable mechanism to continue economic and trade talks. The joint statement, issued after marathon negotiations that lasted throughout the weekend in Geneva, stated that the United States will reduce tariffs on Chinese goods from 145% to 30%, while China will reduce tariffs on American goods from 125% to 10%, removing additional tariffs recently imposed through reciprocal executive orders. The two sides also agreed to establish a permanent mechanism to continue negotiations, led by Vice Premier Hu Lifeng on the Chinese side and Treasury Secretary Scott Besant and Trade Representative Jamison Greer on the US side. Meetings will alternate in China and the United States, or in a third country agreed upon by both sides, with the possibility of technical consultations as needed. In press statements, US Treasury Secretary Scott Besant emphasized that "no one wants economic decoupling," and that the administration is seeking to open the Chinese market to US goods. He also indicated the potential for purchase agreements that could reduce the trade deficit between the two countries. He emphasized that efforts are ongoing to control the US fiscal deficit, without addressing currency issues.
