A planned increase of the flat fee to 200 USD was cancelled. This move follows the high-level talks held last week in Geneva, where the two countries agreed to reduce the tariffs they imposed in April. The US lowered its tariffs on Chinese goods from 145% to 30%, while China reduced its retaliatory tariffs from 125% to 10%. The agreement is scheduled to last 90 days.

The Customs Tariff Commission of the State Council of China announced that, for 90 days effective May 14 at noon, the additional tariff rate on US goods will be lowered from 34% to 10%.

These substantial tariff reductions will benefit China-US trade and the global economy. The announcement immediately buoyed global financial markets. In Asia, stock indexes in Tokyo, Shanghai, Chinese Taipei, and Seoul all saw significant gains during Tuesday's trading session. On Wall Street, the Nasdaq Composite jumped more than 4%, the S&P 500 climbed 3.3%, and the Dow Jones Industrial Average increased 2.8%.