India, May 14 -- In a strategic pause on May 12, the US and China resolved to reduce tariffs on their goods temporarily, taking a new turn in the escalating trade war between the two. The new rates came into effect on Wednesday. Additionally, a mechanism to deliberate over economic and trade relations will be set up, with Chinese vice-premier He Lifeng, US treasury secretary Scott Bessent, and trade representative Jamieson Greer spearheading the talks. China pledged to revoke non-tariff countermeasures - a reference to the curbs on the export of critical minerals used in the manufacturing of batteries and other advanced applications.

The aim of this pause seems to be to finalise the contours of a broader agreement in due course. Earlier,...