The United States and China today postponed the entry into force of some of the imposed import duties by 90 days, marking a de-escalation of the trade tensions that have shaken the global economy, writes Agence France-Presse, quoted by BTA.
This postponement will take effect "until May 14", the two world economies announced in a joint statement published after two days of talks in Geneva.
Beijing and Washington agreed to reduce the import duties that they have imposed on each other in recent weeks.
The announcement of the decision relieved financial markets.
The dollar rose by more than 1.5 percent against The yen also gained more than 1.1 percent against the euro amid investor optimism sparked by the announcement of the postponement.
Reducing these tariffs is "in the common interest of the world", China's Commerce Ministry said today, welcoming "significant progress" in trade talks with Washington.
"We hope the United States will use this meeting as an opportunity to continue working with China to correct its practice of unilaterally increasing tariffs" and "bring greater security and stability to the global economy," a Chinese ministry spokesman said.
The talks in Geneva were held with "great respect" and the outcome shows that "neither side wants an economic collapse", added US Treasury Secretary Scott Besant today.
Both countries "have an interest in balanced trade, and that's what the US will strive for," he added, calling on China to "open up to more American goods".
Yesterday, Chinese Vice Premier He Lifen announced "significant progress" after two days of discussions that he described as "frank, in-depth and substantive", recalls AFP.
According to the joint statement, the two sides further agreed to "establish a mechanism to continue discussions on trade and economic relations".
The trade war between Beijing and Washington has shaken global financial markets and fueled fears of inflation in the United States, as well as a slowdown in Washington's economic growth.
"These discussions mark a significant step forward and, we hope, augur well for the future", said Ngozi Okonjo-Iweala, director-general of the World Trade Organization (WTO), after his meeting with He Lifen yesterday.
"These achievements are important not only for the United States and China, but also for the rest of the world, especially for the most vulnerable economies," he added she.
The meeting in Geneva took place two days after Donald Trump announced a trade agreement with Britain, AFP recalls.
During this time, the two countries will negotiate, said US Permanent Trade Representative Jamieson Greer.
"Both countries represented their national interests very well," said Scott Besant, quoted by Reuters. "Washington and Beijing have an interest in balanced trade and the United States will continue to move in that direction," he added.
The Geneva meetings were the first between senior U.S. and Chinese trade policymakers since President Donald Trump imposed steep tariffs on Chinese imports, Reuters reported.
Trade tensions between the world's two largest economies have stalled trade, disrupting supply chains and raising fears of stagflation.
The combined U.S. tariffs of 145 percent on Chinese imports will be cut to 30 percent by May 14, while China's 125 percent tariffs on U.S. goods will be cut to 10 percent, according to a joint statement by U.S. and Chinese negotiators.