(Crankers) The United States and China have announced a mutual reduction on tariffs for a 90-day period following trade negotiations. According to a joint statement, the tariffs by President Donald Trump on China will be temporarily reduced by 24 percentage points.
They will retain a remaining valorem rate of 10% during this period, as reported by Fox News. The news article on tariffs also stated the following:
China agreed to the same stipulations, adding that it will “adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2,” the announcement stated.
Under the deal, reciprocal tariffs for both countries would be reduced by 115%. The U.S. will temporarily lower its tariffs on Chinese goods from 145% to 30%, and China will reduce its levies on American products from 125% to 10%.
It remains unclear what will happen after the 90 day tariff reduction. However, it’s suggested that both the United States and China will continue to negotiate in good faith for the betterment of business.