(VOVWORLD) - After two days of trade negotiations in Geneva, the US and China have agreed to roll back the tariffs they have imposed on each other for 90 days while they continue to negotiate a final agreement.
 US President Donald Trump (Photo: Reuters) |
The US will cut tariffs on Chinese imports from 145% to 30%, while China will cut its tariffs from 125% to 10%. The cuts will take effect on Wednesday, May 14.
President Trump told the media Monday that he appreciates China opening its market to American businesses.
“Both sides now agree to reduce the tariffs imposed after April 2 to 10% for 90 days as negotiators continuing the largest structural issues. But I want to tell you a couple of things. First of all, that doesn't include the tariffs that are already on. It doesn't include tariffs on cars, steal, aluminum, or tariffs that may be imposed on pharmaceuticals,” said the President.
“The biggest thing to me is the opening up,” Trump told reporters. “But it's going to take a while to pay for it, you know it’s not the easiest thing to paper. It would be, I think it would be fantastic for our businesses if we could go in and compete and compete with China. It would be a lot of jobs for China.”
On Monday President Trump said he is likely to speak with President Xi Jinping later this week, adding that, in the event the two fail to reach an agreement after 90 days, the US will not revert to the 145% rate, but Chinese goods will still be subject to a significant US tariff.
Earlier, the US and China issued a joint statement underscoring the importance of bilateral economic and trade relations for both countries and the global economy and of a sustainable, long-term, and mutually beneficial economic and trade relationship.
The two sides agreed to establish a mechanism for continued discussions on economic and trade relations, which will be held alternately in China and the US or in a third country.