By Jamey Kealen, David Mchugh, Elaine Kurtenbach and Ken Moritsugu, Associated Press
Geneva (AP) – US and Chinese officials said on Monday that they had entered into an agreement to make most of their recent prices go back and call a 90 -day truce Their trade war For more discussions on the resolution of their trade disputes.
The stock markets have increased sharply while the two major economic powers of the globe have taken a step back from a confrontation that has Instructed the world economy.
https://www.youtube.com/watch?v=PK4VXRP8TRW
American commercial representative Jamieson Greer said the United States has agreed to lower its rate of 145%on Chinese goods by 115 percentage points to 30%, while China has agreed to lower its rate on American goods by 10%.
Greer and Treasury secretary Scott Bessent announced the pricing discounts at a press conference in Geneva.
The two officials brought a positive tone because they declared that the two parties had set up consultations to continue to discuss their commercial problems. Bessent said at the press conference after two days of talks that the high rate levels would have equipped a complete blockage of the goods of each team, a result that none of the parties wants.
“The consensus of the two delegations this weekend is neither the team that wants a decoupling,” said Bessent. “And what had happened with these very high prices … was an embargo, the equivalent of an embargo. And neither of the two parties wants it. We want trade. “
“We want a more balanced business,” he said. “And I think the two parties are determined to get there.”
DelegationsEscorted in town and guarded by dozens of Swiss police, met for at least a dozen hours on two days of the weekend in a 17th century villa which serves as an official residence of the Swiss ambassador to the United Nations in Geneva.
Sometimes the leaders of delegation have moved away from their staff and settled in sofas on the patios of the villa overlooking Lake Geneva, helping to deepen personal ties in the effort to conclude a highly sought -after agreement.
The Chinese Ministry of Commerce said that the two parties had agreed to cancel 91% of prices on the goods of the other and to suspend an additional 24% of prices for 90 days, bringing the total reduction to 115 percentage points.
The ministry qualified the agreement an important step in resolving the differences from the two countries and said it laid the foundations for additional cooperation.
“This initiative is aligned with the expectations of producers and consumers in the two countries and serves the interests of the two nations as well as the common interests of the world,” said a statement.
China hopes that the United States will cease “the erroneous practice of unilateral tariff increases” and will work with China to protect the development of their economic and commercial relations, injecting more certainty and stability in the world economy, said the ministry.
The joint declaration published by the two countries said that China has also agreed to suspend or delete other measures that it has taken since April 2 in response to American prices.
China has increased export controls on rare earths, in particular certain essentials to the defense industry and has added more American companies to its export control and its unreliable entity lists, restricting their activities with and in China.
The complete impact on complicated prices and other commercial sanctions promulgated by Washington and Beijing remains uncertain. And it depends a lot on things to find out if they will find ways to fill long -standing differences during the 90 -day suspension. Bessent said in an interview with CNBC that US and Chinese officials would meet in a few weeks.
But Investors have rejoiced While the commercial envoys of the two largest economies in the world blocked eyes, finding ways to withdraw from the potentially massive disturbances in world trade and their own markets.
The term contracts for the S&P 500 jumped 2.6% and for the industrial average of Dow Jones up 2%. Oil prices increased more than $ 1.60 a barrel and the US dollar has won against the euro and the Japanese yen.
“This is a substantial de -escalation,” said Mark Williams, chief economist in Asia at Capital Economics. But he warned “there is no guarantee that the 90-day truce will give way to a lasting ceasefire.”
Jens Eskelund, president of the European Union Chamber of Commerce in China, praised the news but expressed prudence. The prices were only suspended for 90 days and there is a great uncertainty about what awaits us, he said in a statement.
“Companies need predictability to maintain normal operations and make investment decisions. The room therefore hopes to see the two parties continue to engage in dialogue to resolve the differences and avoid taking measures that will disturb world trade and will cause collateral damage to those who have been captured in fire, “said Eskellund.
Trump last month raised American prices on China for A 145% handsetAnd China retaliated by hitting American imports with a 125%tax. The rates which are raised mainly equivalent to the two countries to boycott the products of the other, disturbing the trade which exceeded last year 660 billion dollars.
The announcement of the United States and China has sent increases, American term contracts jumping over 2%. The Hong Kong Hang Seng index jumped by almost 3% and benchmarks in Germany and France have both increased by 0.7%
The Trump administration has imposed prices on the countries of the world, but its fight with China was the most intense. Trump import taxes on goods from China include a 20% load intended to put pressure on the fact of stopping the flow of Synthetic fentanyl opioid in the United States.
MCHUL has contributed from Frankfurt, in Germany, Kurtenbach of Mito, Japan and Moritsugu from Beijing.
