The United States and China have agreed to suspend the majority of tariffs in their trade standoff for 90 days while formal negotiations continue. Both countries will reduce reciprocal tariffs to 10 percent from 125 percent and suspend non-tariff countermeasures.
Key Points
Reduction of reciprocal tariffs to 10 percent from 125 percent
Suspend non-tariff countermeasures
First major step back from confrontation
Pros
Reduction of tariffs will ease economic tensions between the two countries
Initial step towards a more sustainable and mutually beneficial trade relationship
Cons
The agreement is temporary and subject to further negotiations