Trump will lower China import taxes from 145% to 30%
China will lower US import taxes to 10%….
Trump get’s the pressure valve release….
Markets in America and Asia open UP…..
But?
Experts cautions that the two countries are STILL in taks on a permanent policy for the rest of the Trump term…
Remember….
China HAS virtually stoppewd shipping things to America for more than a week….
The U.S. and China will slash their tariffs on each other for 90 days, Treasury Secretary Scott Bessent said Monday.
Why it matters: It’s the relief global businesses and investors hoped for, after the trade war brought commerce to a near-halt and sent economies hurtling toward recession.
How it works: The U.S. will lower tariffs to 30% during the pause, while China will cut its tariffs to 10%, Bessent said following a weekend of high-level talks in Switzerland. (Both sides agreed to a 115% cut, though the U.S. rate was higher to begin with because of an anti-fentanyl tariff that will remain in place.)
- “We had very robust discussions, Both sides showed great respect to what was a very positive process,” Bessent told reporters in Geneva.
- A joint statement issued by the world’s two largest economies indicated they intend to hold continued talks during the period.
Between the lines: Bessent, in a CNBC interview later Monday morning, emphasized that the deal is just a pause, and that difficult negotiations are still to come.
- “I don’t think anything’s going to be easy, because this has been going on a long time,” Bessent said.
- “We are the deficit country. Historically the deficit country has a better negotiating position.”
The intrigue: Bessent also laid out a view of how the U.S. wants to work with China in future — a relationship, but with less American dependence on some Chinese manufacturing….
Trump backs down.
Indeed he HAS…..