Condition between the US and China – lowers customs

Scott Bessent, US Finance Minister, says at a press conference that an agreement has been agreed.

-We have reached an agreement on a 90-day break and substantially reduced customs levels.

He also says that they now have the conditions for continued conversations with China.

– We can now achieve a more balanced trade.

The settlement means that Trump’s increased customs levels that were announced earlier this year were withdrawn, and which China then responded by raising its tariffs on US goods.

The United States lowers tariffs on Chinese goods from 145 percent to 30 percent for 90 days. China, in turn, lowers its tariffs for US goods from 125 percent to 10 percent during the same period, according to the Bloomberg news agency.

Countries have published identical statements about the agreement. The purpose of the settlement is to create time to negotiate the trade conflict.

A « mechanism will be created to continue discussions about finance and trade relations », led by China’s Deputy Prime Minister He Lifeng and US Finance Minister Scott Bessent and US Minister of Commerce Jamieson Greer.

« These discussions can take place either in China or in the United States, or in another country, depending on what the parties say, » the statement states.

China was the only country that answered the United States with sharply increased customs duties when Trump announced increased customs against countries worldwide. At the same time, the United States is in negotiations with a number of countries on customs agreements, and in the meantime these customs increases have been paused.

The stock exchanges are rising after the announcement of the customs settlement, which came after negotiations this weekend in Geneva in Switzerland. The trade war between China and the United States has shaken world trade and stock exchanges in recent weeks.

The text is updated.