US and China declared a truce in the trade war: what conditions the governments agreed

To spread: Washington and Beijing have reached preliminary agreements on duties. Both parties reduce rates and cancel additional taxes. A joint statement on the results of economic and trade negotiations of the United States and China in Geneva released the White House on May 12. The statement states that American and Chinese governments "move forward in a spirit of mutual openness, constant communication, cooperation and mutual respect.

" The parties agreed that by May 14, the United States will stop an additional duty of 24% for 90 days for imported goods from China. In this case, the rest of the rate will not be removed in 10%. All changed additional ad valorem duties will also be canceled. China also suspends the effect of 24% for 90 days, keeping a duty of 10%.

The PRC was also obliged to cancel all the altered additional ad valorem duties, as well as to suspend or cancel the non -tariff countermeasures approved from April 2 against the United States. "After taking the above measures, the parties will create a mechanism to continue discussions of economic and trade relations," the statement stated.

In these discussions, the Chinese government will be represented by the Viceremier of the State Council of China HE Lifen, and the US government will be represented by US Finance Minister Scott Bessent and Trade Representative Jajmison Grair. It is reported that meetings can take turns in China and the US or in a third country.

According to FXSTREET, during a briefing, Bessent stated that the parties mutually agreed on suspension of tariff escalation for 90 days and a significant reduction in duties by 115%. At the same time, Grair acknowledged that issues such as fentanyl issues remain unsolved. The Forensic Newspaper explained that the rates will now be as follows: the US tariff includes a 10% base duty and an additional 20% supplement for Fentanyl.