USA and China agree to reduce tariffs for 90 days

The US and China governments have been able to sign a deal over the last weekend so as not only to pause their tariff clash, but also reduce rates for their early states. The effect is temporary, with a forecast of 90 days, but countries are expected to use this time to follow their negotiations.

The agreement states that China’s import tariffs to the US returns to 30%, while from the US to China they are 10%. It is a huge reduction compared to the numbers that the rates had reached: 145% and 125%, respectively.

Obviously countries have come in these numbers not for price policies, but for retaliatory measures. After the US increased China rates from 20%to 54%, the Asian country accounted for 34%rates. The Trump administration wanted to show that it would not accept retaliation, raising the rates to 104%. China also continued to increase, until it arrived that the two countries arrived in numbers that effectively stopped the exchange of products between them.

Fentanil continues to be mentioned in tariff negotiations

The US is still charging 30% in China’s product taxes after the agreement with the justification of being 10% taxes for all countries, plus 20% due to the entry of Fentanil precursor chemicals into the land of Uncle Sam. Since taking office, the Trump administration accuses China not to take enough action to help contain the illegal distribution of opioids in the United States.

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Thus, the questioning of how much Fentanil will impact the negotiations over these 90 days to find more coherent rates between the two countries. Meanwhile, consumers worldwide have already felt price increases resulting from commercial friction between the two largest economic powers today.

Source: Tom’s Hardware