U.S. and Chinese officials said on Monday that they had reached a deal to roll back most of their recent tariffs and call a 90-day truce in their trade war to allow for more talks on resolving their trade disputes, according to the Associated Press.
The U.S. reportedly agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, while China agreed to lower its rate on U.S. goods by the same amount to 10%.
Two days of talks yielded the consensus that the high tariff levels would have amounted to a complete blockage of each side’s goods — an outcome neither side wants. The delegations met for at least a dozen hours on both days of the weekend.
China’s Commerce Ministry said the two sides agreed to cancel 91% in tariffs on each other’s goods and suspend another 24% in tariffs for 90 days. The joint statement issued by the two countries said China also agreed to suspend or remove other measures it has taken since April 2 in response to the U.S. tariffs.
China has increased export controls on rare earths, including some critical to the defense industry and added more American companies to its export control and unreliable entity lists, restricting their business with and in China.
