U.S. Treasury Secretary Scott Bessent said in Geneva, Switzerland that the United States and China have reached a consensus on the tariff issue and agreed to reduce tariffs on each other by 115%, which will take effect before May 14. The United States has reduced its tariffs on China from 145% to 30%, including a 10% base tax rate and a 20% tax on fentanyl. China’s Ministry of Commerce also confirmed the mutual tariff reduction arrangement, and China’s tariff on the United States will be reduced from 125% to 10%.
As for the 34% ad valorem tariff that both sides originally planned to impose on each other’s imported goods, the aforementioned tariff increase measures will be suspended for 90 days, and further talks and consultations will be held in the future.
Both Chinese and US representatives around Genova on May 9 (Fri), the venue of meeting is a private residence belongs to the Swiss ambassador to the UN. The scheduled meeting is two whole day of 10-hour meeting from May 9-10. Both sides were quite firm in the beginning, as they think the other side is in an unfavorable situation. In the morning session, Chinese representative led staff left the residence in an unpleasant manner, for they found US had no sincerity in negotiation.
Later on it I said that both heads advised the representative to continue the meeting in a well control manner. In the afternoon session, Chinese representatives said they finished lunch and continued the meeting. So now both sides agree to cut the tariff for 115%. People are waiting for the deadline of 90 days, see who will recover first. Therefore the goods in US no need to be emptied in the next few days, and unemployment in China will be improved in these 90 days. What will happen after 90 days. Que sera, sera! (Whatever will be, will be!)