U.S. and China reach agreement to slash reciprocal tariffs

(NBC, KYMA/KECY) - The U.S. and China have reached an agreement to slash tariffs in order to diffuse the trade war.

For an initial 90-day period, the U.S. will lower its overall tariffs on Chinese goods from 145% to 30% while China will cut its levies on American imports from 125% to 10%.

This is according to the joint statement.

Treasury Secretary Scott Bessent spoke alongside U.S. Trade Representative Jamieson Greer after the weekend talks in Switzerland in which both side had hailed progress on narrowing differences.

"We have reached an agreement on a 90-day pause and substantially moved down the tariff levels both sides on the reciprocal tariffs will move their tariffs down 115%. We had very robust discussions. Both sides showed great respect.

Throughout the trade process we have had a plan. We have a process in place and now with the Chinese after this weekend we have a mechanism for continued talks. So process, plan and mechanism. I would say one of the big takeaways from this weekend, the United States will continue a strategic rebalancing in many areas that were exposed as supply chain weaknesses during Covid. Whether its medicine, whether its semi-conductors, steel, the other, we've identified five or six strategic industries and supply chain vulnerabilities and we will continue moving toward U.S. independence or reliable supplies from allies on those but the consensus from both delegations this weekend is neither side wants a decoupling. And what had occurred with these very high tariffs, as ambassador Greer said, was the equivalent of an embargo and neither side wants that. We do want trade. We want more balance trade and I think that both side are committed to achieving that."

Scott Bessent, Treasury Secretary