US, China agree to slash tariffs that fueled markets' chaos: Live updates

 

The U.S. and China said Monday that they have agreed to slash reciprocal tariffs as the world's two biggest economies seek to end a trade war that has fueled fears of inflation and recession and disrupted financial markets around the globe.

Treasury Secretary Scott Bessent told reporters the two sides had agreed that tariffs would come down by over 100 percentage points. The U.S. will cut extra tariffs it imposed on Chinese imports in April to 30% from 145%, while Chinese duties on U.S. imports will fall to 10% from 125%.

The new measures are effective for 90 days. President Trump said a key element of the deal is a pledge by China to open their markets to American businesses and to eliminate "non-monetary" trade barriers.

"We are not looking to hurt China," Trump said. "They were very happy to do something with us. The relationship is very very good."

The deal comes days after the Trump administration announced a deal with the United Kingdom.

Bessent and Trade Representative Jamieson Greer began meeting with their Chinese counterparts in Geneva on May 10. President Donald Trump later that day hailed "great progress," describing the discussions as "a total reset" and saying the two sides agreed on many issues.