US-CHINA JOINT STATEMENT: US to cut tariffs of Chinese goods to 30% from 145% for 90 days; China to cut tariffs on US goods to 10% from 125% for 90 days

• US will modify the application of rate of duty on articles of China by suspending 24ppts of that rate for an initial period of 90 days.


• US will retain the remaining rate of 10% on those articles; China to retain the remaining ad valorem rate of 10% and remove modified rate.

FUTURE TALKS

• Talks may be undertaken on an alternating basis in China and the US ahead, or with agreement in a 3rd party.


• Committed to a process of further talks.

Reaction details (08:11)

Immediate risk-on injected into the market following the better-than-expected outcome after both nations agreed to bring down tariffs by 115ppts. 

• Immediate upside seen in US and European equity futures.


• Immediate upside in the Dollar and CNY.


• Immediate upside in copper and oil.


• Immediate downside in havens, with bonds, gold, JPY, and CHF all faltering

Analysis details (08:02)

• Note, this is a better outcome that expected, Trump on Friday floated China tariffs of 80% from 145%.

12 May 2025 - 08:00- ForexImportant- Source: Newswires