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Understanding reached in Geneva: mutual 115% tariff cut and new talks by 14 May. Trump: ‘Relationship with Xi is very good’
Turn in the trade war between the US and China. The two powers announced today, Monday 12 May, a temporary understanding reached in Geneva that includes the partial suspension of tariff measures for 90 days. This was announced by the White House in a joint statement, stating that both sides are committed to implementing the agreement by 14 May.
US Treasury Secretary Scott Bessent explained that the reciprocal tariffs applied so far will be reduced by 115%, marking a first concrete step towards an easing of economic relations. President Donald Trump commented by calling this step a ‘reset’ in relations with Beijing and announced a conversation with Xi Jinping scheduled for later this week.
Trump made it clear, however, that if a final agreement is not reached in the next three months, duties will not return to the previous level of 145%, but will be ‘substantially higher than the 30%’ set during the truce.
In his speech, the president also levelled harsh criticism at the European Union, calling it ‘in many ways meaner than China’ on trade and accusing it of treating the US ‘very unfairly’.
Turning to the subject of pharmaceuticals, Trump said he was ready to sign an executive order to drastically lower their cost in America. The measure, he explained, aims to redistribute costs globally: ‘Europe and the rest of the world will pay a little more and America a lot less’. On Truth Social he wrote that prices will be cut ‘by more than 59 per cent’.
In a surprise, Trump also revealed the possibility of a trip to Turkey next Thursday, coinciding with new talks between Russia and Ukraine. ‘There is a possibility,’ he said, praising President Erdogan’s role and calling the meeting “potentially very positive”.
Finally, he was optimistic about the nuclear negotiations with Iran, calling Tehran’s representatives ‘very intelligent’ and ‘reasonable’. ‘We want Iran to be rich, happy and great, but it cannot have a nuclear weapon,’ he added.
There was no missing passage on the controversial gift from Qatar of a Boeing worth $400 million, destined to become the new Air Force One. Trump called the donation ‘a great gesture’, pointing out that the plane will be destined for his future presidential library. Faced with a question about the possible ethical implications of the gift, the president dismissed the issue: ‘It would be stupid to turn it down. The journalist should be embarrassed by his question’.
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(Photo: © AndKronos)
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