US and China agree to slash tariffs by 115% over next 90 days in landmark deal

By Henry Moore

The United States and China have agreed to cut tariffs by 115% over the next 90 days in what could spell the end of Donald Trump's global trade war.

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After two days of intensive negotiations in Geneva, White House officials announced a trade deal late on Sunday.

Giving details on the agreement, US Treasury Secretary Scott Bessen confirmed both countries have agreed to pause tariffs for the next 90 days, marking a significant de-escalation in tensions between the two economic giants

Scott Bessen said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks. First, I want to thank our Swiss host.

“The Swiss government has been very kind in providing us this wonderful venue, and I think that led to a great deal of productivity we’ve seen.

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“We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”

It comes just days after the US announced a “historic” deal with the UK.

Despite US reference to a “trade deal”, Chinese officials have used less certain wording.

He Lifeng, China’s vice premier and Beijing’s lead negotiator, said talks had led to “important steps towards resolving” the two countries’ difference.

American tariffs on China currently sit at 145 per cent, but last week Trump suggested he would be willing to drop levies down to 80 per cent.

US Trade Representative Ambassador Jamieson Greer added: “This was, as the Secretary pointed out, a very constructive two days.

"It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought.

“That being said, there was a lot of groundwork that went into these two days. Just remember why we’re here in the first place — the United States has a massive $1.2 trillion trade deficit, so the President declared a national emergency and imposed tariffs, and we’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency.”

Donald Trump’s decision to slap tariffs on almost every country on Earth plunged the global economy into chaos.

Recent weeks have seen Trump walk back on several tariffs, including those on cars and Chinese tech.