The United States and China took a step on Monday to defuse the trade war between the world’s two largest economies, agreeing to temporarily reduce the punishing tariffs they have imposed on each other.
The move by the United States, after President Trump had repeatedly declared that he would not lower tariffs without concessions from China, represented an acknowledgment of the costs of an all-out trade war with China. Despite the White House’s bluster, the Trump administration backed off, for now, from its steepest tariffs, and agreed to hold more formal talks with Beijing after companies and consumers started showing signs of economic strain.
Explaining that many of the tariffs that he imposed remain in place, Mr. Trump said at the White House on Monday that talks would be focused in part on “opening up” China to American businesses. He said that he expected to talk to President Xi Jinping of China this week, but that putting a full deal on paper would take a while.
“We’re not looking to hurt China,” Mr. Trump said.
In a joint statement released earlier in the day, the United States and China said they would suspend their respective tariffs for 90 days and continue negotiations they started this weekend. Under the agreement, the United States would reduce the tariff on Chinese imports to 30 percent from its current 145 percent, while China would lower its import duty on American goods to 10 percent from 125 percent.
The outcome of the frenzied negotiations brought tariff rates close to where they were before Mr. Trump ratcheted them higher on April 2, which he billed as “Liberation Day.” However, the talks did not appear to yield any meaningful concessions beyond an agreement to continue discussions.
