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US and China agree to slash tariffs for 90 days

Following negotiations in Geneva, the United States and China have agreed to lower tariffs substantially for the next 90 days, the White House announced. The aim is to de-escalate the current trade war and allow both parties time negotiate to achieve a "sustainable, long-term and mutually beneficial economic and trade relationship," they said in a joint statement. 
The US will temporarily lower its tariffs on Chinese goods from 145 to 30 percent (10 percent plus a 20 percent fentanyl-related levy). China, meanwhile, will cut its tariff on American imports from 125 percent to 10 percent. It's not clear exactly how that will affect prices of electronics goods coming into America from China like smartphones, computers, cameras and drones.
The news caused an after-hours stock rally with S&P 500 futures rising 2.8 percent and the dollar up 0.7 percent against other currencies. "We want more balanced trade and I think both sides are committed to achieving that," said US Treasury secretary Scott Bessent. "Neither side wants a decoupling."  
The effect of US tariffs on the price of consumer goods was brought home recently with the news that DJI had increased the price of its popular Osmo Pocket 3 gimbal camera from $520 to $800 over the past few months. Given the rhetoric between the nations and the sky-high tariffs imposed, such a substantial reduction comes as a surprise. "This is better than I expected. I thought tariffs would be cut to somewhere around 50 percent and this is much lower," economist Zhiwei Zhang told Reuters.  This article originally appeared on Engadget at https://www.engadget.com/general/us-and-china-agree-to-slash-tariffs-for-90-days-120050454.html?src=rss