U.S. and China ease trade tensions with tariff reductions
U.S. Treasury Secretary Scott Bessent stated that the outcome of trade negotiations with China led to the creation of a mechanism to prevent escalation in bilateral relations. Over the weekend, U.S. and Chinese delegations agreed that starting Wednesday, both countries will reduce mutual tariffs by 115 percentage points for 90 days.
Bessent said during a meeting with journalists in Riyadh that the United States does not want a situation where trade ties between the world's two largest economies are severed. The American delegation, led by President Donald Trump, begins a four-day visit to the Middle East on Tuesday, with Saudi Arabia as the first stop.
The U.S. Treasury Secretary also expressed hope for the development of future trade relations between Washington and Beijing with minimal tensions. Bessent mentioned that the United States also hopes for further fruitful cooperation with other East Asian countries; in this context, he referred to Japan, Taiwan, and Indonesia.
In the opinion of the head of the U.S. Treasury, Trump's actions are aimed at "economic rebelancing."
Starting Wednesday, May 14, for 90 days, U.S. tariff rates on Chinese goods will be reduced to 30%, and Chinese tariffs on imports from the U.S. will be lowered to 10%. Beijing also committed to lifting non-tariff restrictions imposed on the United States, such as those on the export of certain critical minerals.
Xi Jinping spoke for the first time since the announcement of the trade agreement with the U.S. on Monday. - There are no winners in a trade war, the Chinese leader said during the opening of the China-Celac forum within the Caribbean Community of Latin American and Caribbean States. He added that "bullying and hegemony will only lead to self-isolation."
