US and China agree to lower tariffs in trade war de-escalation video

Published: Monday, May 12, 2025 at 9:02 am

US and China Strike Deal to Ease Trade War Tariffs

In a significant development, the United States and China have reached an agreement to substantially lower tariffs on each other's goods, marking a de-escalation in their ongoing trade war. The announcement, made in Geneva by US Treasury Secretary Scott Bessent, revealed that both nations will reduce tariffs by 115% for a period of 90 days.

This agreement represents a crucial step away from the escalating trade tensions that have dominated headlines in recent months. Before this deal, the US had imposed tariffs on Chinese goods reaching 145%, including a 20% tariff specifically targeting fentanyl imports. China retaliated with tariffs of 125% on US imports. This back-and-forth had significant implications for global trade and economic stability.

The agreement comes after intense negotiations and signals a willingness from both sides to find common ground. While details of the specific goods affected and the exact timeline for implementation remain to be fully clarified, the commitment to lower tariffs offers a glimmer of hope for businesses and consumers impacted by the trade war. The White House has also claimed a trade deal was reached, while Beijing has hailed the agreement as an important first step.

This temporary truce provides a window for further negotiations and potentially a more comprehensive resolution to the underlying trade disputes. The 90-day period will be crucial in determining the long-term trajectory of US-China trade relations.

BNN's Perspective: This agreement is a welcome development, offering a much-needed respite from the escalating trade war. While the 115% reduction is a positive step, it's crucial to remember this is a temporary measure. Both sides need to use this time wisely to address the core issues driving the trade conflict and forge a more sustainable and mutually beneficial trade relationship. The devil, as always, will be in the details of the final agreement.

Keywords: US China trade war, tariffs, trade deal, Scott Bessent, Geneva, fentanyl, trade negotiations, US tariffs, China tariffs, de-escalation, trade relations, global trade, White House, Beijing, trade agreement

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