Photo illustration portraits of US President Donald Trump and Chinese President Xi Jinping. [AFP]
Here is a look at the key points in the 90-day agreement the United States and China announced Monday to de-escalate their market-roiling trade war.
New US duties: 30%
Washington agreed to reduce tariffs on Chinese goods from the additional 145 per cent announced by President Donald Trump in April to 30 per cent — which will still be applied on top of pre-existing duties.
The new figure includes a 20-per-cent tariff Trump has imposed to pressure Beijing to do more to fight fentanyl trafficking, which has caused an addiction crisis in the United States.
New Chinese duties: 10%
Beijing, which had hit back at Trump’s tariffs with retaliatory duties of 125 per cent on US imports, agreed to slash them to 10 per cent.
Each side thus agreed to cut its existing tariffs by 115 percentage points.
90 days
The temporary truce reached in Geneva will take effect May 14, for 90 days.
The two sides agreed to continue talks “in the spirit of mutual opening, continued communication, cooperation and mutual respect”.
Tariff spiral
The world’s top two economies had been waging an escalating war of tit-for-tat tariff measures since Trump returned to the White House in January.
Trump started his new term slapping additional duties of 10 per cent on Chinese goods — soon increased to 20 per cent — in response to China’s role in fentanyl production.
Then, announcing his “Liberation Day” tariffs on April 2, Trump slapped an additional 34-per cent levy on Chinese goods.
When China retaliated with a 34-per cent tariff on US goods, Trump hit back, bringing the tariff to 104 per cent.
China then upped its tariff to 84 per cent, and Trump counter-attacked with 125 per cent.
Adding the separate fentanyl-linked tariff, total US levies on Chinese goods had risen to 145 per cent by April 10.
Photo illustration portraits of US President Donald Trump and Chinese President Xi Jinping.
[AFP]
Here is a look at the key points in the
90-day agreement
the United States and China announced Monday to de-escalate their market-roiling trade war.
New US duties: 30%
Washington agreed to reduce tariffs on Chinese goods from the additional 145 per cent announced by President Donald Trump in April to 30 per cent — which will still be applied on top of pre-existing duties.
The new figure includes a 20-per-cent tariff Trump has imposed to pressure Beijing to do more to fight fentanyl trafficking, which has caused an addiction crisis in the United States.
New Chinese duties: 10%
Beijing, which had hit back at Trump’s tariffs with retaliatory duties of 125 per cent on US imports, agreed to slash them to 10 per cent.
Each side thus agreed to cut its existing tariffs by 115 percentage points.
90 days
The temporary truce reached in Geneva will take effect May 14, for 90 days.
The two sides agreed to continue talks “in the spirit of mutual opening, continued communication, cooperation and
mutual respect
“.
Tariff spiral
The world’s top two economies had been waging an escalating war of tit-for-tat tariff measures since Trump returned to the White House in January.
Trump started his new term slapping additional duties of 10 per cent on Chinese goods — soon increased to 20 per cent — in response to China’s role in fentanyl production.
Then, announcing his “Liberation Day”
tariffs
on April 2, Trump slapped an additional 34-per cent levy on Chinese goods.
Stay informed. Subscribe to our newsletter
When China retaliated with a 34-per cent tariff on US goods, Trump hit back, bringing the tariff to 104 per cent.
China then upped its tariff to 84 per cent, and Trump counter-attacked with 125 per cent.
Adding the separate fentanyl-linked tariff, total US levies on Chinese goods had risen to 145 per cent by April 10.
By AFP