U.S., China Reach Agreement To Lower Tariffs In 90-Day Cool-Off Period

Tyler Durden's Photo

by Tyler Durden

Monday, May 12, 2025 - 06:12 AM

Update (0812ET):

U.S. Treasury Secretary Scott Bessent appeared on Bloomberg TV to discuss the newly announced 90-day suspension of most tariffs between the United States and China.

Below is a summary of key takeaways from the interview, as reported by Bloomberg:

BESSENT: BOTH SIDES AGREE WE DON’T WANT GENERALIZED DECOUPLING

BESSENT: PHASE ONE TRADE DEAL WITH CHINA OFFERED A TEMPLATE

BESSENT: WILL SEE WHERE THE FINAL CHINA RECIPROCAL TARIFF ENDS

BESSENT: CURRENT TARIFF LEVEL FOR CHINA IS A ‘FLOOR’

BESSENT: APRIL 2 LEVEL WOULD BE A CEILING FOR CHINA

BESSENT: NOW HAVE A PROCESS IN PLACE TO AVOID CHINA ESCALATION

BESSENT: IMPLAUSIBLE TARIFFS ON CHINA GO BELOW 10%

BESSENT: WANT TO SEE CHINA BOOST CONSUMPTION, OPEN THEIR MARKET

BESSENT: CHINA MET PHASE-ONE OBLIGATIONS UNTIL BIDEN NEGLECT

BESSENT: ESCALATORY TARIFFS WERE LIKE US–CHINA EMBARGO

BESSENT: CAN ALWAYS GO BACK TO APRIL 2 LEVEL FOR CHINA TARIFFS

BESSENT: SEE PHONE CALL BEFORE MEETING FOR TRUMP AND XI

BESSENT: IF CHINA ACTS, PERHAPS FENTANYL TARIFF COULD COME DOWN

BESSENT: NOT PUSHING FOR DEATH PENALTY ON FENTANYL PRODUCTION

more:

https://www.zerohedge.com/markets/us-china-reach-agreement-lower-tariffs-90-day-cool-period