After weeks of uncertainty, the United States and China have officially signed a new Economic and Trade Agreement. This agreement aims to address long-standing concerns and establish clearer guidelines for commerce.
Tariff Relief
The agreement includes a 90-day pause on most of the tariffs in place since April 2. This pause allows for “further negotiations” over the next three months. Both the U.S. and China will roll back the reciprocal tariffs. American tariffs on China are currently around 30%, while duties on U.S. goods are approximately 10%. These lower rates will go into effect on Wednesday.
Strengthening Bilateral Economic Ties
The agreement emphasizes the significance of the economic relationship between the world’s two largest economies. Both nations have acknowledged that expanded trade, adherence to international market norms, and market-based outcomes serve their mutual interests. This collaboration fosters broader international cooperation in the freight and logistics sectors.
The preamble to the agreement specifically highlights the benefits of contributing to the harmonious development and expansion of world trade. It also addresses existing trade and investment concerns identified by both parties.
