Trump May Speak to Xi This Week

Combined 14.5% US levies on most Chinese imports will be reduced to 30%

- BLOOMBERG

The US and China will temporarily lower tariffs on each other's products in a dramatic ratcheting down of trade tensions that buys the world's two largest economies three months to work toward a broader agreement.

The combined 145 percent US levies on most Chinese imports will be reduced to 30 percent, including the rate tied to fentanyl, by May 14, while the 125 percent Chinese duties on US goods will drop to 10 percent, according to a joint statement and from officials in a briefing Monday in Geneva.

"We are in agreement that neither side wants to decouple," US Treasury Secretary Scott Bessent said, adding that "we had a very robust and productive discussion on steps forward on fentanyl" and that talks might lead to China buying more American-made products.

"We would like to see China open to more US goods," Bessent said. "We expect that as the negotiations proceed, that there will also be the possibility of purchase agreements to pull what is our largest bilateral trade deficit into balance."

Bessent added that the tariff reductions don't apply to sectoral duties imposed on all US trading partners, and the tariffs applied on China during the first Trump administration remain in place. Asked what would happen at the end of 90 days to avoid tariffs ratcheting back up, Bessent indicated there's a chance to extend the truce further.

"Just like with all our other trading partners, as long as there is good faith effort, engagement and constructive dialog, then we will keep moving forward," he said.