US 145% to 30%, China 125% to 10%
US and China Agree to Cut Tariffs by 115 Percentage Points
"South Korea Is Not in Such a Bad Situation"
The United States and China have each agreed to reduce their mutual tariffs by 115 percentage points for 90 days. Jeon Byungseo, head of the China Economic and Financial Research Institute, stated that "GDP was the driving factor for the United States, while employment was the key factor for China in these negotiations."
Appearing on KBS1 Radio's "Jeongyeok Sisa" on the 13th, Jeon explained, "The U.S. recorded negative GDP growth in the first quarter. If negative growth continues in the second quarter, concerns within the U.S. could intensify. For China, while it is not yet a major issue, a significant drop in exports to the U.S. could result in at least 19 million people becoming unemployed. These two factors likely brought the U.S. and China to the negotiating table."
Jeon also commented, "It does not appear that the U.S. intends to cripple China with tariffs. Rather, it seems to be a means of applying additional pressure." He continued, "China, aware of this, participated in the negotiations in an attempt to ease the technological restrictions that the U.S. has strongly imposed so far. For example, China likely wanted to negotiate ways to lift the semiconductor sanctions."
Jeon offered an optimistic outlook on tariff negotiations between South Korea and the United States as well. He said, "It appears that South Korea will enter negotiations in July, but the U.S. is likely to negotiate with its priority partners before us. Since we will be able to observe the outcomes of those negotiations, our situation is not so unfavorable." He added, "Since full-scale negotiations with the U.S. will take place after the presidential election, there is some doubt as to whether any discussions about tariffs before then would have any real effect. This is likely why the U.S. has not engaged in active negotiations yet."
The United States and China agreed to reduce their mutual tariffs by 115 percentage points each during high-level trade talks held on the 12th (local time) in Geneva, Switzerland. Photo by AP Yonhap News
The United States and China announced that they had agreed to reduce the tariffs imposed on each other's goods by 115 percentage points each during high-level talks held on the 12th (local time) in Geneva, Switzerland.
The U.S. decided to cancel 91% of the additional 125% tariffs imposed on Chinese goods since February and to defer the remaining 24% for 90 days. China also lowered its retaliatory tariffs on U.S. goods by the same amount, 115 percentage points. As a result, U.S. tariffs on Chinese imports will drop from 145% to 30%, and China's retaliatory tariffs on U.S. imports will fall from 125% to 10%. This measure will take effect starting on the 14th.
On the U.S. side, Treasury Secretary Scott Besant and U.S. Trade Representative Jamison Greer attended the negotiations, while Vice Premier He Lifeng and Li Chenggang, Deputy Minister and International Trade Negotiator of the Ministry of Commerce, participated on the Chinese side. This was the first time since the launch of the Donald Trump administration and the ensuing tariff war that high-level officials from both countries had met face-to-face to discuss tariff issues.
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