#TradeWarEases The USA and China will temporarily lower tariffs on each other's goods. This decision is aimed at reducing trade tensions and giving the two largest economies in the world three more months to resolve their differences.

Bloomberg reports that the total 145% tariffs imposed by the USA on most Chinese goods will be reduced to 30%, including the rate related to fentanyl, by May 14, while China's 125% tariffs on American goods will be lowered to 10%.

"We had a very active and productive discussion about the next steps regarding fentanyl. We agree that neither side wants to break off relations," said US Treasury Secretary Scott Bessent.

It is also noted that "the parties will create a mechanism for continuing discussions on economic and trade relations." This statement is a step towards de-escalating the tariff war.

Trade Representative Jamison Greer stated that the USA wants to achieve a more balanced trade with China. The White House called the decision a "trade agreement," but it remains unclear what constitutes an acceptable goal for both sides and how much time will be needed to achieve this goal.