The announcement, made in a joint statement, comes after a weekend of marathon trade negotiations in Geneva, Switzerland, by officials from the world’s two largest economies.
By May 14, the US will temporarily lower tariffs on Chinese goods from 145% to 30%, but according to the joint statement, China will lower collection of US imports from 125% to 10%.
They said both sides recognize “the importance of sustainable, long-term, mutually beneficial economic and trade relations.”
Both sides also agreed to establish a “mechanism for continuing discussions on economic and trade relations.” This was led by his deputy prime minister of China, his Lifeeng, US Treasury Secretary Scott Bescent and US trade representative Jamieson Greer.
“These discussions may be alternating between China and the US or in third countries due to parties’ agreements. If necessary, both parties may have working-level consultations on related economic and trade issues,” he added.
Global investors are cheering for the thawing of the trade war caused by President Donald Trump’s massive tariffs that have disrupt financial markets, disrupt supply chains and harbored the fear of a recession.
Dow Futures rose by more than 2%, S&P 500 futures rose by nearly 3%, and technological Nasdaq Composite Futures rose by more than 3.5% during Asian afternoon trading. The Asian market is also high, with Hong Kong’s Hangsen index increasing by more than 3%.
MNA/