U.S. Secretary of the Treasury Scott Bessent said, “In the coming weeks, I will meet with the Chinese side again for a more comprehensive agreement.”
Secretary Bessent appeared on CNBC on the 12th, local time, and noted, “We have established a mechanism to avoid the pressure of tariff increases from China.”
Secretary Bessent and Chinese Vice Premier He Lifeng conducted marathon negotiations in Geneva, Switzerland, over the two days starting on the 10th, and agreed to reduce the tariffs imposed by both countries by 115 percentage points each over 90 days. As a result, the tariffs imposed by the U.S. on Chinese goods will decrease from 145% to 30%, while the tariffs imposed by China on U.S. goods will decrease from 125% to 10%.
Of the tariffs imposed by the U.S. on Chinese goods, 20% are related to fentanyl, and Secretary Bessent explained that there was “in-depth discussion” between the two countries during the negotiations. He said, “We confirmed during the negotiations that China is seriously assisting the U.S. in blocking fentanyl distribution.”
However, Secretary Bessent indicated that the possibility of Chinese tariffs falling below 10% is very low, and if an agreement is not properly reached, it could return to the levels seen on April 2nd (Liberation Day).
As the U.S.-China trade war, which had been escalating into a tit-for-tat conflict, decided to reach a temporary ceasefire, the market rejoiced. The main stock indices in Hong Kong recorded increases of around 3%, and as of 9 p.m. Korean time, European stocks are also showing upward trends.
At the same time, the Dow Jones Industrial Average in the U.S. stock market rose by over 1,000 points, and the Nasdaq 100 futures and Standard & Poor's (S&P) 500 futures are showing increases of 3.84% and 2.97%, respectively.
The U.S. dollar has returned to strength. The dollar index, which indicates the value of the dollar against six major currencies, has surpassed 101. The price of West Texas Intermediate (WTI) crude oil for June delivery rose by around 4%.