The BBC saysBeijing and Washington issued a joint statement earlier today saying that both parties will suspend 24 percent of the current tariffs they have applied to their counterpart. This means that tariffs on Chinese goods arriving in the U.S. will drop to 30%, while China will reduce the duty rate on American products arriving at its ports to 10%. Although the 30% tax is high amount for import taxes, it’s still a bigger reduction than most experts anticipated.
The trade war escalation between the two nations started when President Trump imposed tariffs on every nation on earth in early April. This bumped the tariffs on Chinese goods from 20% to 54%, which Beijing answered with a 34% tariff on U.S. goods entering the country. Trump did not like this, as he was hoping that Beijing would negotiate instead of firing back with its own set of taxes, so he bumped up his tariffs to 104%.
