U.S. and China Agree to Ease Tariffs Amidst Trade Negotiations in Switzerland
Amid ongoing trade tensions that have unsettled global markets, the United States and China have reached an agreement to significantly lower tariffs on each other’s goods. The decision follows a weekend of discussions held in Switzerland, marking a notable shift in a trade dispute that has impacted the global economy.
Under the new arrangement, U.S. tariffs on Chinese imports will decrease from a staggering 145% to a more moderate 30% for an initial period of 90 days. Similarly, China’s tariffs on U.S. goods will fall from 125% to 10%.
Leading the talks were Vice Premier He Lifeng for China and U.S. Trade Representative Jamieson Greer along with Treasury Secretary Scott Bessent. At a press conference, Bessent highlighted the shared objectives of the two nations, stating, “We concluded that we have shared interests, and we both have an interest in balanced trade.” Greer expressed optimism about future collaboration, particularly concerning efforts to combat fentanyl smuggling.
The revised U.S. tariff levels include a permanent 10% base tariff with an additional 20% tariff imposed by President Trump earlier this year over concerns regarding fentanyl-related chemicals produced in China.
Both delegations lauded the outcome of the negotiations. Vice Premier He characterized the discussions as “candid, in-depth, and constructive,” noting that they resulted in “substantial progress and reached important consensus.” Greer echoed this sentiment, acknowledging China’s proactive stance and the establishment of a consultation mechanism for ongoing trade issues.
Bessent emphasized the importance of continued trade engagement, stating, “Neither side wants a decoupling. We do want trade, we want more balanced trade, and I think both sides are committed to achieving that.”
The previously steep tariffs had severely disrupted trade between the two economic giants and posed challenges for U.S. consumers and businesses facing inflated prices for Chinese goods. While the tariff reductions are a positive development for importers, they remain temporary and contingent on the progress of future negotiations.
Jens Eskelund, president of the European Union Chamber of Commerce in China, commented on the development, saying, “While the Chamber is encouraged by the decision, uncertainty remains. Businesses need predictability to maintain normal operations and make investment decisions.”
Looking ahead, the U.S. is negotiating with China to increase its purchase of American goods, reminiscent of a trade deal attempted by the Trump administration in 2020. However, the anticipated $200 billion in U.S. exports never materialized, as China did not fulfill the agreement.
The next rounds of discussions are planned to occur in either China, the U.S., or a neutral location, according to a joint statement. Dmitry Grozoubinski, executive director of Geneva Trade Platform, remarked on the broader economic relationship, saying, “Are we going to rebalance the fundamental nature of the global economy in which China is a massive manufacturing hub and the U.S. is a consumption economy? No, I don’t think so. But is there things the two sides can do for one another that would make both sides happy, at least a little bit? Sure, there absolutely must be.”
Aowen Cao contributed from Beijing.
Copyright 2025 NPR
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