China, US agree to roll back tariffs

KATHMANDU: China and the US have agreed to significantly reduce tariffs levied on each other’s goods.

Negotiators of the two countries reached an understanding to suspend increased tariffs for 90 days initially following trade talks on Switzerland.

This means the US tariff on Chinese goods will drop from 145% to 30%, while those imposed by China on US goods will come down to 10%.

“We concluded that we have shared interests and we both have interest in balanced trade,” US Trade Secretary Scott Bessent said in a press meet on Monday. “Neither side wants a decoupling. We do want trade, we want more balanced trade and I think both sides are committed to achieving that.”

The US-China trade war escalated significantly following Donald Trump’s return to power in January 2025. Trump imposed a 145% tariff on Chinese imports, citing trade imbalances and issues like fentanyl trafficking, while China retaliated with 125% tariffs on US goods. These measures, the highest since the early 20th century, have disrupted global trade, with estimates suggesting a 77-90% drop in US-China trade.