US to cut tariffs on Chinese goods to 30 per cent

The US and China have arrived at an agreement that they will withdraw their previously announced reciprocal tariffs and counter tariffs for an initial period of 90 days In the meantime China will impose 10 per cent tariffs on US goods and the US will tax Chinese goods at about 30 per centThe understanding was arrived at recognising the importance of their bilateral economic and trade relationship to both countries and the global economy as per a joint statement on Monday Both countries recognised the importance of a sustainable longterm and mutually beneficial economic and trade relationshipBoth countries reflected on their recent discussions and believed that continued discussions have the potential to address each sides concerns in their economic and trade relationshipGoing ahead the two countries will establish a mechanism to continue discussions about economic and trade relationsThe representative from the Chinese side for these discussions will be He Lifeng Vice Premier of the State Council and the representatives from the US side will be Scott Bessent Secretary of the Treasury and Jamieson Greer United States Trade RepresentativeUS could pay only price other nations do for some drugsPresident Donald Trump says hersquoll sign an executive order that if implemented could bring down costs of some medications mdashreviving a failed effort from his first term The order Trump is promising will direct the Department of Health and Human Services to tie what Medicare pays for medications administrated in a doctorrsquos office to the lowest price paid by other countries ldquoI will be instituting a MOST FAVOURED NATIONrsquoS POLICY where the US will pay the same price as the Nation that pays the lowest price anywhere in the Worldrdquo the president saidThe World ReactsStocks and the dollar surged on Monday after the United States and China said they had agreed on a 90day pause on tariffs and reciprocal duties would drop sharply giving investors some confidence that a fullscale trade war may have been avertedWind turbine blades waiting to be loaded onto a ship for export at the port in Lianyungang in China PICAFPJens Eskelund president European Union Chamber of Commerce in ChinalsquoThe tariffs only were suspended for 90 days and there is great uncertainty over what lies ahead Businesses need predictability to maintain normal operations and make investment decisions The chamber therefore hopes to see both sides continue to engage in dialogue to resolve differences and avoid taking measures that will disrupt global trade and result in collateral damage for those caught in the crossfirersquoSimon Edelsten fund manager Goshawk Asset Management LondonlsquoItrsquos no surprise that the worldrsquos two largest economies are trying to address their longstanding issues but donrsquot expect an easy resolution Even if quite modest tariffs remain that could make a large difference to trade flows as many Chinese exports to the US are lowmargin and price sensitiversquoMark Williams chief Asia economist at Capital EconomicslsquoThis is a substantial deescalation But there is no guarantee that the 90day truce will give way to a lasting ceasefirersquoJan Von Gerich chief market analyst Nordea HelsinkilsquoMarkets have taken it at face value I personally am a bit sceptical if you want to end up with low tariffs then why do it like this Itrsquos still bouncy and uncertainty is elevatedrsquoZhiwei Zhang chief economist Pinpoint Asset Management Hong KonglsquoObviously this is very positive news for economies in both countries and for the global economy and makes investors much less concerned about the damage to global supply chains in the short term But we also need to keep in mind this is only a threemonth temporary reduction of tariffs So this is the beginning of a long processrsquoThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoeveratOptionskeyd0ddb8ef8f1a62a8cdd22fac27fc5ea7formatiframeheight90width728params