12/5/2025–|Last update: 12:20 (Mecca time)
The United States and China announced today, Monday, an agreement to reduce counter -tarit duties as it seeks to end a trade war that confused the global economy and raised the concern of financial markets.
US Treasury Secretary Scott Bessent told reporters after his talks with Chinese officials in Geneva that the two sides had reached an agreement to suspend 90 days, adding that customs duties will decrease by more than 100% to 10%.
“The two countries are their national interests to the fullest. We have an interest in achieving a balanced trade, and the United States will continue to seek this,” said Besent.
Narrowing differences
Pesent was speaking alongside American commercial actor Jimson Jarir after the talks held at the beginning of the week, during which the two sides praised the progress made in narrowing the chasm of differences.
Geneva’s meetings are the first direct meetings between senior US and Chinese economic officials since US President Donald Trump returned to power and his launch of international customs duties campaign and his imposition of special customs duties in particular on China.
Since assuming his post in January, Trump raised the customs duties paid by the American importers on Chinese goods to 145%, in addition to the fees imposed on many Chinese goods during his first term and fees imposed by the Biden administration.
https://www.youtube.com/watch?v=fo_4-1KKUO0
China has responded by imposing restrictions on the export of some rare ground elements, which are vital elements of weapons and electronic consumer goods in the United States, and the customs duties on American goods were raised to 125%.
Trade
The dispute related to customs duties stopped the bilateral trade movement worth about $ 600 billion, which led to the disruption of supply chains, and raised fears of inflationary recession, and led to the demobilization of some employees.
Financial markets are awaiting signs of a breakthrough in the trade war, and the future contracts for Wall Street shares, and the dollar strengthened its strength against other safe haven currencies today, as the talks strengthened hopes to avoid global recession.
