US, China suspend part of their tariffs for 90 days; tariffs to come down 115% on both sides

US-China trade deal: Amidst talks of a trade deal, the United States of America and China have announced a 90 days suspension of part of their tariffs , according to a joint statement. US Treasury Secretary Scott Bessent announced that the United States and China have agreed to implement a 90-day suspension of tariffs, alongside a commitment to significantly reduce existing tariff rates.
Bessent confirmed that both nations would reciprocally decrease their tariffs by 115%.

The United States of America has decided to reduce tariffs on Chinese imports to 30 percent from 145 percent during a 90-day period. Similarly, China has agreed to decrease its tariffs on American products to 10 percent from 125 percent for the identical duration.

Also read: US announces trade deal with China after two days of negotiation in Geneva: 'Differences were not so large'

Bessent stated: "we have reached an agreement on a 90-day pause and substantially moved down the tariff levels." He described the negotiations with China as constructive and remarked that "both sides showed great respect."

Bessent said that the US and China have established effective protocols to prevent future escalations. He additionally noted that China's economy has not shifted towards a consumption-driven model.

According to China's commerce ministry, both parties agreed to implement measures by May 14

The ministry further stated its intention to halt or eliminate non-tariff countermeasures against the US that were implemented since April 2.

Oil prices surge over 3% following tariff pause between China and US. The Hang Seng Index in Hong Kong witnessed a significant rise of 3.34 per cent on Monday, following the announcement from China and the United States about temporarily halting their respective trade tariffs. The decision aims to reduce the ongoing trade friction between the two major economic powers. The index climbed by 762.94 points, reaching 23,630.68.

Bessent had earlier expressed satisfaction with the "a great deal of productivity" achieved during discussions with China to resolve differences between the two major economic powers. These talks occurred in Switzerland over two days, following President Donald Trump 's implementation of high tariffs and China's subsequent retaliation.

Bessent had indicated on Sunday that "substantial progress" was made during the weekend meetings, though specific details were limited. He mentioned that additional information would be provided during a Monday briefing.

Trade Representative Jamieson Greer had hinted at reaching an agreement but withheld specifics. Both he and Bessent made brief statements to journalists after concluding discussions at the Swiss UN ambassador's residence in Geneva, declining to answer questions.

Trump had eagerly proclaimed success on his social media platform, announcing "GREAT PROGRESS" towards what he described as a potential "total reset" regarding the tariffs that have destabilised global markets.

The Chinese response remained cautious, as evidenced by a Saturday night editorial released before the second day of talks. Beijing stated it would "firmly reject any proposal that compromises core principles or undermines the broader cause of global equity."