US, China to slash tariffs

The United States and China reached a better-than-expected deal to temporarily slash tariffs, sending stocks and the US dollar sharply higher, as the world's two biggest economies seek to end a damaging trade war that has stoked fears of recession.

- REUTERS

The US will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on US imports will fall to 10% from 125% for the next 90 days, the two sides said Monday.

The accord does not include the "de minimis" exemptions for low-value e-commerce shipments from China and Hong Kong, which the Trump administration terminated May 2, according to a source familiar with the negotiations. The duties are also still higher than before US President Donald Trump announced a raft of tariffs April 2.

However, the deal went further than many analysts had expected following weeks of confrontational rhetoric on trade.