China and US agree to slash tariffs

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The US and China have agreed to lower tariffs for the next 90 days in a major de-escalation in the tariff war that is threatening to cut off trade between the world’s two largest economies.

As part of an agreement hammered out in Geneva, the US will lower tariffs on Chinese goods to 30 per cent from 145 per cent and China will reduce duties on US imports to 10 per cent from 125 per cent.

Washington and Beijing have been locked in an escalating trade war since early April, when Trump lifted tariffs on Chinese imports and China imposed retaliatory duties.

The punitive duties have damaged trade between the countries, with Bessent acknowledging last month that the situation was unsustainable

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