President Donald Trump announced that his administration has reached a temporary agreement with China to reduce tariffs as both nations work towards a final trade agreement. This development aims to open the Chinese market to U.S. businesses.
Trump highlighted that the primary focus of the discussions is to facilitate U.S. companies’ entry into China. He acknowledged that formalizing the agreement will require time but emphasized the potential benefits, including job creation, that this move could bring both countries.
The administration’s efforts are geared towards rebalancing trade by increasing U.S. market access and eliminating non-tariff trade barriers. During negotiations, it was agreed upon to lower “reciprocal” tariffs unveiled at a White House event on April 2. The tariffs on Chinese imports will be reduced from 125% to 10%, remaining so for 90 days, while similar reductions are applied by China.
President Trump clarified that the new tariff reductions do not affect previously imposed tariffs on specific goods like cars, steel, and aluminum, nor potential tariffs on pharmaceuticals, as incentives to encourage their production in the United States.
Moreover, he described the negotiations as “very friendly,” asserting that the agreement with China would support economic stability and growth. Trump also alluded to past issues with China’s adherence to the “phase one” trade deal during his first term.
Treasury Secretary Scott Bessent, appearing on FOX Business Network’s “Kudlow,” noted the importance of considering China’s compliance record in ongoing negotiations.
