China and US agree to lower tariffs after talks in Geneva

China and USA optimistic after customs talks in Geneva Keystone-SDA

China and the US have agreed to lower their mutual tariffs following high-level trade talks in Geneva over the weekend. According to a joint statement, the agreement will apply temporarily for 90 days.

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The news led to strong price gains on the international stock markets, while the euro came under pressure against the US dollar.

According to the joint statement, US tariffs on Chinese imports will fall to 30%. Previously, these were at 145%. Beijing’s surcharges on imports from the United States will fall from 125% to 10%.

Delegations from both sides had met in Geneva, Switzerland, for consultations over the weekend. Both the US and China subsequently signaled progress in the negotiations, but without providing further details.

The two sides agreed to set up a mechanism for economic and trade consultations, said Vice Premier He Lifeng, according to Chinese state media. Details would be worked out as soon as possible.

China and the US announced a joint declaration for this Monday. He described the talks in Switzerland at the weekend as “open and constructive”. The meeting in Geneva was an important step towards resolving differences of opinion through dialogue and laid the foundation for deepening cooperation.

China is willing to “expand the cake of cooperation” and push forward trade relations with the US for new development to bring more stability to the global economy, He said.

The talks were attended by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, among others.

Substantial progress

Trade between the US and China is hardly profitable anymore due to the high tariffs and has therefore almost come to a standstill.

Both countries have so far tried to give the impression that they have the upper hand and do not need to take the first step to approach the other side. The talks in Geneva should now mark a turning point. Greer said at the end of the talks that common ground had quickly been found, suggesting that the differences were not as great as had been thought.

Importance of the WTO

As reported by Chinese state television, Vice Premier He, who had travelled to Switzerland to discuss economic and trade issues, also met the Director General of the Geneva-based World Trade Organisation (WTO), Ngozi Okonjo-Iweala.

The Chinese national spoke with the Nigerian about the recent tariff negotiations with the US. All sides should resolve disputes through dialogue within the framework of the WTO, He reportedly said. China would continue to participate in the reform of the WTO.

Translated from German by DeepL/jdp

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