The North News
Chandigarh, May 12
The US and China announced plans to temporarily lower tariffs on each other’s goods in an effort to ease trade tensions and allow three more months to resolve key disputes between the world’s two largest economies. Under the agreement, the US will reduce its combined 145% tariffs on most Chinese imports to 30% by May 14, including those tied to fentanyl. China will cut its 125% duties on US goods to 10%, according to the statement and briefings from officials on Monday NDTV reported.
“We had a very robust and productive discussion on steps forward on fentanyl,” said Treasury Secretary Scott Bessent. “We are in agreement that neither side wants to decouple.” The statement added that both nations will set up a mechanism to continue discussions on trade and economic relations.
According to Mint, the recent two-day trade talks between the United States and China marked the first direct engagement between senior economic officials from both nations since President Donald Trump began his second term and reimposed tariffs on several trading partners, particularly China.
Both sides had previously cited “substantial progress” in negotiations, a development that helped Chinese stocks recover from earlier losses triggered by the tariff announcements. The news of the trade deal boosted Asian markets Hong Kong surged 3%, Shanghai rose nearly 1%, and stock exchanges in Japan and Taiwan also posted gains, Mint reported.
