The talks in Switzerland lead to a 90 -day truce waiting for a wider agreement. In the meantime, duties of 30% on Chinese goods imported in the USA and 10% on American ones in China. The agreement will enter into force by May 14th.
Production day on the front of the “duties war”. Following the meeting in Geneva between the American delegation, led by the American treasure Scott Bessentand the Chinese one, headed by the vice premier He lifengthis morning a Joint declaration of China and the United States relating to the Geneva meeting.
That the talks had had a positive result had appeared clear since Sunday, when at the end of the meeting with the Chinese delegation Scott Beesent had defined the work done “very productive”. The confirmation has come today.
The joint declaration reads that China and the United States, “recognize the importance of their economic and commercial relationships, for both countries and for the global economy”, deciding to lower mutual rates by a period of 90 days by 14 May.
In detail: «The United States will change the application of the additional rate to valuem of the duty on the articles from China (including the articles of the special administrative region of Hong Kong and the special administrative region of Macao) referred to in the executive order 14257 of 2 April 2025, suspending 24 percentage points of this rate for an initial period of 90 days, keeping the remaining rate to valuem 10% on these articles in accordance with the terms of said order “.
Beijing, for its part, undertakes to modify “consequently the application of the additional rate of duty to valuem on the articles of the United States referred to in the announcement of the Commission for the customs rate of the Council of State no. 4 of 2025, suspending 24 percentage points of this rate for an initial 90 -day period, maintaining the remaining additional duty rate to valuem 10% on these articles ».
For 90 days, therefore, Washington agrees to reduce the duties imposed in Beijing in the so -called “liberation day” From 34% to 10% for 90 days and to remove all the duties imposed during the Rubbaglia escalation that followed. China, equally, followed the de-Escalation line, e will remove all the duties imposed from April 2, except 10%leaving the current rate at 10%. According to things, Chinese goods exported to the USA will pay a 30% rate (the duties relating to the Feneryl of February and March remained), while American goods exported to China will undergo a 10%rate.
Beijing also decided to “adopt all the administrative measures necessary for Suspend or remove the non -tariff countermeasures adopted against the United States from 2 April 2025». Beijing, in the excited days of the escalation, had imposed a ban on export in the USA (and in other countries) of different types of “rare lands”, fundamental for the sector tech American. Since China’s decision applies to all countries, It is not clear whether a specific countermeasure of the United States will be considered pursuant to the agreement.
Finally, the joint declaration claims that “The parties will establish a mechanism to continue the discussions on economic and commercial relations», With the discussions that can take alternatively in China, the United States or in a third country, after agreement between the parties.
The announcement of this 90 -day “truce” immediately pushed the markets to rise, with the Hong Kong Hang Seng index that gained 3.01%, followed by European bags.
