US and China Agree to Slash Tariffs Temporarily After Trade Talks

The United States and China agreed Monday to a 90-day truce in their raging trade war — with each agreeing for now to slash reciprocal tariffs by more than 100 percentage points, bringing China’s duty rate down to just 10%.

Under the agreement, the US will drop its 145% tariff rate on most Chinese goods to 30%, while China will lower its rate to 10% from 125%, officials said.

The agreement also includes a mechanism for talks toward a permanent deal to continue — and the two sides spoke about how they will both address the flow of fentanyl from China to the US, a White House readout of the agreement read.

“The relationship is very, very good. I’ll speak with President Xi [Jinping] maybe at the end of the week,” Trump told reporters, adding that “to me, the biggest thing that came out of that meeting is they’ve agreed — now we have to get it papered — but they’ve agreed to open up China.”

The president also warned that if China doesn’t agree to a final deal in 90 days, the US tariff rate would raise to “substantially higher” than the current 30%.

“I think they’re going to follow,” Trump predicted. “I think they want [a deal] very badly.” (Read more from “US and China Agree to Slash Tariffs Temporarily After Trade Talks” HERE)