'US-China to suspend part of tariffs for 90 days'

The United States and China will suspend part of their punitive tariffs for 90 days, according to a joint US-China statement from Geneva. The suspension will take effect "by May 14," the statement said.

China will review "additional duties" on imports of US goods, the Commerce Ministry said in a joint statement following negotiations in Geneva.

By May 14, the United States will "modify the application of the additional ad valorem duty rate on Chinese-origin customs duties (including those from the Hong Kong and Macao Special Regions) by suspending 24 percentage points of that rate for an initial period of 90 days, while maintaining the remaining 10 percent ad valorem duty rate on such items."

China, for its part, will accordingly modify the application of the additional ad valorem rate on U.S. items, "suspending 24 percentage points of such rate for an initial period of 90 days while maintaining the remaining additional ad valorem rate of 10 percent on such items."

After adopting the agreed measures, "the parties will establish a mechanism to continue discussions on economic and trade relations.

Speaking in Geneva, US Treasury Secretary Scott Bessent said that China and the US will "lower their tariffs by 115%" after agreeing to a 90-day pause. This was reported by international media. After this measure, the United States will reduce its tariffs on China to 30% (previously they were 145%, ed.) while China will lower those on the United States to 10% (previously they were 125%, ed.): this was clarified by US Treasury Secretary Scott Bessent.

Bessent, in the press conference held in Geneva, gave the authentic interpretation of what was agreed with China. "We have reached an agreement for a 90-day pause", which will lead the parties to reduce the duties by 115%.

Specifically, this involves a 24% cut to the additional US ad valorem tariff rates on goods of Chinese origin (including Hong Kong and Macao) pursuant to US President Donald Trump's Executive Order 14257 of 2 April, while maintaining the remaining 10% rate, as well as the removal of the subsequent rates of orders 14259 of 8 April and 14266 of 9 April 2025.

China will therefore make a mirror cut to 10% of the tariff rate on US-made goods, compared to that established by the Commission's announcement of Customs Tariffs No. 4 of 2025, "suspending 24 percentage points of that rate for an initial period of 90 days" and removing the subsequent ones of the customs announcements Nos. 5 and 6 of 2025. Beijing also committed to adopting "all necessary administrative measures to suspend or revoke the non-tariff countermeasures adopted against the United States since April 2, 2025".

The United States and China, in their joint statement, recognized "the importance of their bilateral economic and trade relations for both countries and the global economy" as well as "the importance of having a sustainable, long-term and mutually beneficial economic and trade relationship." Reflecting on the recent talks and believing that continuing discussions can help address the concerns of both sides in their economic and trade relations, the parties decided to proceed "in a spirit of mutual openness, continuous communication, cooperation and respect."

He and Bessent to lead consultation mechanism

Vice Premier He Lifeng, for the Chinese side, and Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, for the Chinese side, will lead the delegations "in the consultation mechanism to continue discussions on economic and trade relations," according to the China-US joint statement after the trade talks held in Geneva. The discussions "may be held alternately in China and the US, or in a third country, upon agreement between the parties." If necessary, the two sides "may conduct working-level consultations on relevant economic and trade issues."

Hong Kong closes at +2.98%

Hong Kong stock markets closed rallying on the back of a tariff truce reached by the US and China in marathon talks in Geneva: the Hang Seng index rose 2.98% to 23,549.46 points.

US Treasury Secretary Scott Bessent, in a press conference, gave an authentic interpretation of what was agreed with the delegation led by Chinese Vice Premier He Lifeng. "We have reached an agreement for a 90-day pause", which will lead the parties to reduce duties by 115%, up to 30% in the US case and 10% for the Dragon. Specifically, this involves a 24% cut in the additional US rates on customs duties for goods of Chinese origin (including Hong Kong and Macao) regarding Executive Order 14257 of US President Donald Trump of April 2, while maintaining the remaining rate of 10%, as well as the removal of the subsequent rates of orders 14259 of April 8 and 14266 of April 9, 2025, the result of the further escalation.

China will therefore make a mirror cut to 10% of the tariff rate on US-made goods, compared to that established in the Commission's announcement of Tariffs No. 4 of 2025, "by suspending 24 percentage points of that rate for an initial period of 90 days" and removing the subsequent tariffs announcements Nos. 5 and 6 of 2025.

Beijing also pledged to take "all necessary administrative measures to suspend or revoke non-tariff countermeasures adopted against the United States from April 2, 2025."

Hong Kong jumps 3.01% on US-China tariff cuts

Hong Kong stock market rallying on US and Chinese decision to reduce tariffs for 90 days: Hang Seng index jumps 3.01% to 23,555.06 points.