China and the United States have decided to reduce their mutual tariffs in the ongoing trade dispute. As can be seen from a joint explanation, the regulation temporarily applies to 90 days. At the international stock markets, the news caused strong price gains, while the price of the euro came under pressure to the US dollar.
Accordingly, US tariffs fall to Chinese imports to 30 percent. Before that, these were 145 percent. Beijing’s surcharges against imports from the United States decrease from 125 percent to ten percent.
Talks in Geneva
Previously, delegations of both sides in Geneva in Switzerland had met. Both the United States and China subsequently signaled progress in the negotiations, but without giving any further details.
According to Chinese information, both sides agreed to set up a mechanism for advice on business and trade, as Vice Prime Minister He Lifeng said, according to Chinese state media. The meeting in Geneva was an important step to solve the disagreements through dialogue and laid the basis for deepening the collaboration.
USA also speak of agreement
According to US information, the two sides had agreed in the customs dispute – and thus achieved a possible breakthrough in the stuck trade conflict. Among other things, US Finance Minister Scott Bessent and US trade officer Jamieson Greer took part in the talks.
The two largest economies in the world are arguing with China and the USA. Among the previously previously duties, trading between the two countries was no longer possible, which had also affected the global economy.
The markets reacted relieved. In the early trade, the share price of the Danish shipping giant Maersk initially increased by around ten percent.
Note d. Red.: This article was updated on May 12th at 9.33 a.m.