'Ceasefire' in US-China tariff war; important changes coming

WASHINGTON: The tariff war between the United States and China has severely affected the economies of countries around the world. It has backfired on the United States, which was looking to give China a blow. However, the US-China trade war has now temporarily ended. The US will reduce tariffs on Chinese products from 145 percent to 30 percent. At the same time, China announced that it will reduce tariffs on American imports from 125 percent to 10 percent. The two countries agreed on Monday to withdraw the tariffs for 90 days. The announcement came after trade talks in Geneva, Switzerland.

The two sides also agreed to establish a mechanism to continue discussions on economic and trade relations, with Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer joining forces. This ended months of tensions between the two countries. Hong Kong's benchmark index rose three percent on news that the trade war had ended.