The United States and China agreed to reduce their sky-high tariffs by 115 percentage points after two days of talks. The de facto trade embargo between the world’s two largest economies had created domestic and global economic pressure that seemed on the brink of disaster. The de-escalation sent markets around the world soaring, highlighting the Trump administration’s strategy of maintaining significantly higher tariffs while incentivizing its major trading partners to submit offers. US tariffs on Chinese goods thus fell from 145% to 30%, and Chinese tariffs on American goods from 125% to 10%.
