US and China Reach Agreement: Tariffs to Be Drastically Reduced

(Patria) - The United States and China have agreed to drastically reduce tariffs on each other's goods for an initial 90-day period, according to a joint statement released by both countries on Monday.

This announcement comes after marathon trade negotiations over the weekend in Geneva between officials from the world's two largest economies.

The US will temporarily reduce tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American imports from 125% to 10%, the joint statement reads.

As a reminder, the trade war between China and the US was initiated by US President Donald Trump, who imposed drastic tariffs on Chinese goods.

He did this as part of introducing tariffs on goods from almost every country in the world, a move he later suspended for 90 days.

Nevertheless, the two-day negotiations in Geneva, held at the villa of the Swiss Ambassador to the United Nations, have led to an agreement between Beijing and Washington.