The United States and China have mutually agreed to significantly reduce trade tariffs in the upcoming 90 days, top US officials confirmed on Monday.
The agreement came after United States President Donald Trump hinted over the weekend that the trade negotiations with China were going well and in a positive direction.
"We have reached an agreement on a 90-day pause," US Treasury Secretary Scott Bessent told journalists, adding that "both sides will move their tariffs down" to 115 per cent.
Bessent added, “We both have an interest in balanced trade; the US will continue moving toward that. “ Beijing also announced 'substantial progress' in trade talks with Washington.
The tariff launched by the Trump administration triggered Beijing’s response, resulting in major price rises for basic goods, including raw materials for pharmaceuticals and electronics, across the US.
Trump, while announcing the tariffs, said these were aimed at balancing trade, limiting the malpractices of its trade partners while championing the slogan of “Make America Great Again” (MAGA).
A claim quickly fell on its head as pressure kept mounting on the domestic market, resulting in a loss in the US share markets.
Tariffs launched by Trump against Beijing prompted the latter to retaliate, resulting in major price increases for basic goods across the US.
The news saw the US dollar, which has dipped significantly since Trump began his second term in January, rebound somewhat against the yen and the euro.
Despite warnings from economists on the deleterious effect tariff hikes would have on ordinary Americans, Trump has forged ahead with his trade war.
Targeting rivals like China and allies alike, the tariffs have caused billions of dollars of losses to the US economy and sent stock markets tumbling.
Following the tariff announcements, the Trump administration has sought to create new trade deals with its top partners, including the UK, last week.
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