Trump and China Agree to 90-Day Tariff Pause, China Vows to Open Up

President Donald Trump announced on Monday that China has agreed to ‘open up’ its markets to U.S. businesses, following a high-level trade meeting in Geneva, Switzerland. The news came alongside an agreement to temporarily slash most tariffs on each other’s goods for 90 days.

Details of the Deal

While Trump offered few specifics about China’s promised opening, he called it ‘maybe the most important thing’ to come out of the talks. He emphasized that the agreement is not yet finalized, saying, ‘We have to get it papered.’ However, he expressed confidence that China had committed to making changes.

The deal will see the U.S. reduce tariffs on Chinese goods to 30% from the current 145%, and China will lower tariffs on U.S. products to 10% from 125%.

Despite the temporary reduction, Trump stated that tariffs would ‘go up substantially’ if a longer-term trade agreement isn’t reached by the 90-day mark. He also clarified that the U.S. will maintain 20% tariffs on certain Chinese goods due to concerns about fentanyl, as well as tariffs on steel and aluminum.

The agreement also includes China suspending or removing non-tariff barriers it had imposed on U.S. goods since April 2.

Impact of the Agreement

These duties, imposed by Trump in April, effectively amounted to a trade embargo on one of America’s largest suppliers of goods. The 90-day tariff suspension is expected to provide some relief for businesses on both sides and could potentially pave the way for a more comprehensive trade agreement in the future.

The Chinese Embassy in the U.S. has yet to comment on Trump’s remarks.