Trade negotiations between the US and China have led to a historic agreement aimed at reducing tariffs and promoting fair trade practices. Here is a summary of the key points:
- Tariff Reductions:
- Both countries will reduce tariffs by 115% while maintaining a 10% tariff.
- China will remove retaliatory tariffs announced since April 4, 2025, and will suspend non-tariff countermeasures taken against the US.
- The US will remove additional tariffs imposed on China on April 8 and 9, 2025, but will maintain the customs duties imposed before April 2, 2025.
- Trade Deficit:
- The US trade deficit in goods with China was $295.4 billion in 2024, the largest with any trading partner.
- The agreement aims to address these imbalances and bring benefits to American workers, farmers, and businesses.
- Future Discussions:
- Both nations will establish a mechanism to continue trade and economic discussions.
- The US will be represented by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, while China will be represented by Vice Premier He Lifeng.
- Addressing the Fentanyl Crisis:
- Both countries will take aggressive actions to curb the flow of fentanyl and other precursors from China to illicit drug producers in North America.
These developments mark a significant step in trade relations between the US and China, with both countries working towards a more balanced and fair trade partnership.
