- US to modify application of the rate of duty on articles of China
- This will be for an initial period of 90 days
- China will also suspend its tariffs on the US for an initial period of 90 days
- Only a 10% base tariffs rate will be applied
- A mechanism to continue discussions about economic and trade relations is established
- These discussions may be conducted alternately in China and the US, or in an agreed third country
- Both sides may conduct working-level consultations on relevant economic and trade issues
- Full statement
Risk is ramping up on the headlines here with S&P 500 futures now up by 2.5% on the day. Essentially, the US to cut tariffs on China from 145% to 30%. Meanwhile, China is lowering theirs from 125% to 10%. This will apply for a period of 90 days for now as both sides look to discuss further on how to seek further progress in trade negotiations.
This article was written by Justin Low at www.forexlive.com.