Business

US and China reach deal to temporarily slash tariffs, easing slump fears

Published

1 year ago

May 12, 2025

The United States and China have agreed to temporarily slash reciprocal tariffs in a deal that surpassed expectations as the world’s two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.

The U.S. will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on U.S. imports will fall to 10% from 125%, the two sides said on Monday. The new measures are effective for 90 days, Reuters reported.

The dollar rose and stock markets lifted following the news, which helped allay concerns about a downturn triggered last month by U.S. President Donald Trump’s escalation of tariff measures aimed at narrowing the U.S. trade deficit.

“Both countries represented their national interest very well,” U.S. Treasury Secretary Scott Bessent said after talks with Chinese officials in Geneva. “We both have an interest in balanced trade, the U.S. will continue moving towards that.”

Striking a conciliatory tone towards China, Bessent was speaking alongside U.S. Trade Representative Jamieson Greer after the weekend talks in Switzerland in which both sides hailed progress on narrowing differences.

“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said. “And what had occurred with these very high tariffs … was the equivalent of an embargo, and neither side wants that. We do want trade.”

The tariff dispute had brought nearly $600 billion in two-way trade to a standstill, disrupting supply chains, sparking fears of stagflation and triggering some layoffs.

The Geneva meetings were the first face-to-face interactions between senior U.S. and Chinese economic officials since Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.

Bessent said the deal did not include sector-specific tariffs and that the U.S. would continue strategic rebalancing in areas including medicines, semiconductors and steel where it had identified supply chain vulnerabilities.

The accord went further than many analysts had expected following weeks of confrontational rhetoric on trade.

“This is better than I expected. I thought tariffs would be cut to somewhere around 50%,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong.

“Obviously, this is very positive news for economies in both countries and for the global economy, and makes investors much less concerned about the damage to global supply chains in the short term,” Zhang added.

REPRIEVE

Since taking office in January, Trump had hiked the tariffs paid by U.S. importers for goods from China to 145%, in addition to those he imposed on many Chinese goods during his first term and the duties levied by the Biden administration.

China hit back by putting export curbs on some rare earth elements, vital for U.S. manufacturers of weapons and electronic consumer goods, and raising tariffs on U.S. goods to 125%.

Shares in European firms hit by the trade war rallied after the deal. Shipping company Maersk was the biggest gainer in Europe, up more than 12%. It warned last week that container volumes between the U.S. and China had plunged due to the dispute.

Meanwhile, shares in luxury firms LVMH and Gucci-owner Kering were up 7.4% and 6.7% respectively.

U.S. planemaker Boeing did not respond to requests for comment on how the deal would affect deliveries of aircraft to Chinese customers. In April, it said it was looking to resell potentially dozens of planes locked out of China by tariffs.

Wall Street stock futures climbed as the talks boosted hopes a global recession might be averted.

Trump gave a positive reading of the talks before they had concluded, saying the two sides had negotiated “a total reset… in a friendly, but constructive, manner.”

The president levied the tariffs in part after declaring a national emergency over fentanyl entering the United States, and Greer said conversations over curbing the deadly opioid were “very constructive” though on a separate track.

U.S. and Chinese officials met over two days at the Swiss U.N. ambassador’s gated villa overlooking Lake Geneva. Greer said many of the most challenging issues were settled outside, sitting on patio furniture beneath the shade of a tall tree.

“Having this setting, as opposed to … a sterile hotel conference situation or conference rooms, I think, let us develop personal relationships with our counterparts and lead to the successful conclusion,” he said.

Related Topics:#Tariffs China featured Trade US

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Uzbekistan, Kazakhstan target Afghanistan in push to expand regional trade

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent.

Published

7 days ago

August 7, 2026

Ariana News

Uzbekistan and Kazakhstan are seeking to deepen economic cooperation and jointly expand into new regional markets, including Afghanistan, as part of broader efforts to strengthen trade and investment across Central Asia and the Middle East.

According to Uzbek media, the initiative was discussed during the Uzbek-Kazakh Business Forum in Tashkent, where business leaders and trade associations from both countries explored opportunities to promote their products in third-country markets, particularly Afghanistan, Syria and Iraq.

Afghanistan featured prominently in the discussions, with participants noting that Kazakhstan’s exports to Afghanistan reached nearly $500 million during the first seven months of 2025—almost matching the country’s total exports to Afghanistan for all of 2024. Officials said the long-term goal is to increase exports to $3 billion.

The forum also highlighted growing imports of mineral raw materials from Afghanistan. Participants discussed a proposed agreement to supply Afghan zinc ore to the Almalyk Mining and Metallurgical Complex in Uzbekistan.

Beyond Afghanistan, delegates examined emerging business opportunities in Syria and Iraq, where reconstruction efforts are expected to drive demand for food products, construction materials and industrial goods.

The forum also focused on improving regional logistics. Officials discussed using available capacity on Turkish freight trucks transiting Uzbekistan, a move expected to reduce transport costs and improve access to regional markets.

At the conclusion of the forum, both sides agreed to organise joint business missions to third-country markets, including Aleppo, Syria, in late September and Erbil, Iraq, in early October, with the aim of strengthening commercial partnerships and identifying new investment opportunities.

The discussions reflect growing economic cooperation between Uzbekistan and Kazakhstan as both countries seek to expand regional connectivity, diversify exports and strengthen trade links with neighbouring markets, including Afghanistan.

Business

Uzbekistan’s Fergana region strengthens economic ties with Afghanistan

The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif.

Published

1 week ago

August 6, 2026

Ariana News

Uzbekistan’s Fergana region is moving to deepen economic cooperation with Afghanistan after officials and business leaders agreed to fast-track joint investment projects and expand bilateral trade.

According to a statement from the Fergana Regional Administration, Governor Khayrullo Bozorov met with leading Afghan business figures, including Emerald Diamond Trading Director Abdul Hamid Anyuri, Kam Air Director Atilla Azimi, Tojmahal Petroleum Director Abdul Latif Nawruzi, and their regional partners to discuss practical measures for strengthening economic ties.

The meeting followed a Fergana delegation’s visit to Afghanistan on July 26-27, during which officials and business representatives held talks in Kabul and Mazar-i-Sharif. The delegation also inaugurated Fergana Trade Houses in both cities to promote trade and commercial cooperation.

“The parties agreed to accelerate the implementation of joint investment projects, increase bilateral trade and elevate cooperation to a new level,” the regional administration said.

Discussions focused on turning agreements reached during the Afghanistan visit into practical projects, identifying new investment opportunities, and expanding trade between the two sides. Afghan business representatives expressed interest in working with Fergana companies in key sectors including trade, agriculture, aviation, energy and logistics, while presenting several new investment initiatives.

Bozorov reaffirmed Fergana’s commitment to strengthening economic relations with Afghanistan, saying the regional administration stands ready to support joint projects and create favourable conditions for closer business cooperation.

The regional administration said the meeting reflects growing momentum in economic engagement between Uzbekistan and Afghanistan, with both sides seeking to expand cross-border trade, attract investment and develop new commercial partnerships as part of broader efforts to strengthen regional economic connectivity.

Business

Afghanistan invites Iranian investors to expand economic cooperation

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

Published

2 weeks ago

July 30, 2026

Ariana News

Afghanistan has invited Iranian investors to explore business opportunities and participate in joint economic projects as the country seeks to strengthen investment and trade ties with its western neighbor.

Kamaluddin Tawhidi, head of the Afghanistan-Iran Joint Chamber of Commerce, made the appeal during a visit to Iran, where he attended the “Economic Cooperation Opportunities with Afghanistan” conference in Alborz Province, according to Iran’s state broadcaster.

Speaking at the event, Tawhidi highlighted Afghanistan’s investment potential and encouraged Iranian businesses to take advantage of opportunities across a range of economic sectors.

Discussions focused on expanding private-sector cooperation, increasing joint investment, and boosting bilateral trade between the two countries.

Tawhidi said stronger economic partnerships could create new business opportunities and support broader regional economic growth.

The meeting comes as Afghanistan continues efforts to attract foreign investment and deepen economic cooperation with neighboring countries.