Breaking Trade News: 90-day Tariff Truce Between China and US
Initial Deal: Reduction of Reciprocal Tariffs Agreed Upon by China and United States - Tentative deal reached: Duties between China and U.S. lessened
Here's some insightful scoop on the recent trade dispute between the US and China.
US and China Trade Dispute Takes a Halt
In a groundbreaking move, the US and China have agreed to a 90-day tariff truce in their ongoing trade dispute. According to a joint statement, this agreement is temporary and will last for three months, potentially paving the way for further negotiations.
New Tariff Rates for US-China Trade
The US tariffs on Chinese imports will plummet from a staggering 145% to a mere 30%. Conversely, China's tariffs on US imports will nosedive from 125% to just 10%. This significant reduction in reciprocal tariffs marks a promising step towards resolving the trade dispute.
Delegations from both countries met in Geneva to discuss the trade impasse. Both the US and China have hinted at progress in their negotiations, although details remain scarce.
Chinese reports suggest that both sides have agreed to establish a consultation mechanism for addressing economic and trade issues. According to Vice-Premier He Lifeng, the Geneva meeting was a crucial step towards solving the differences through dialogue and forming a solid foundation for future cooperation.
US Shares Positive News
According to US reports, both sides have reached an agreement in the tariff dispute, possibly shattering the deadlock in the trade conflict. The talks were attended by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer.
China and the US, the world's two largest economies, have been at loggerheads, with tariffs creating a significant impediment to trade between the two nations, which, in turn, affected the global economy.
- China
- US
- Tariffs
- Geneva Meeting
- Trade Negotiations
Let's Dive Deeper:
The 90-day tariff agreement between China and the United States, effective from May 12, 2025, is a temporary ceasefire aimed at slightly defusing the recent tariff tensions and creating space for additional negotiations.[1][2][3] Key aspects of the agreement include:
- The United States agreed to reduce its reciprocal tariffs on Chinese imports from 125% to a baseline of 10% for the next 90 days, effectively suspending the additional 24% to 115% tariff components and retaining a 10% baseline tariff instead of the original 34% baseline tariff from April 2, 2025.[1][2][3] After this 90-day period (around August 12, 2025), the 34% tariff will be reinstated unless a new agreement is reached.
- China agreed to similarly reduce its retaliatory tariffs on US goods from 34% to 10%, suspending the higher rates for the 90-day period. China will also withdraw non-tariff countermeasures imposed since April 2, 2025.[1][2][3]
- Both sides are maintaining certain tariffs, including the US 20% fentanyl-related tariffs, Section 301 tariffs dating back to 2018, Section 232 tariffs on steel, aluminum, and autos, antidumping and countervailing duties, and US most-favored nation (MFN) duty rates.[1][3]
- The Geneva meeting served as the platform where US and Chinese officials discussed and announced this 90-day tariff truce, aimed at creating a temporary respite in tariff escalation to alleviate economic pressure, improve trade relations, and provide an opening for additional talks aimed at resolving trade disagreements[1][4]. In summary, the agreement establishes a 90-day period (from May 14 to around August 12, 2025) during which both countries will maintain a reduced 10% tariff baseline on each other's goods, suspending the higher tariffs imposed in April 2025. This truce is designed to facilitate additional negotiations, with the Geneva discussions marking the critical moment for unveiling the tariff reduction initiative.[1][2][3][4]
- The Commission has also been consulted on the draft budget, given the significant impact tariffs can have on industries, finance, and business, as well as general news in the context of politics.
- The ceasefire in the tariff dispute between the US and China, agreed upon during the Geneva meeting, could lead to positive developments in US-China trade relations, affecting multiple industries and businesses worldwide.
- The United States and China, as the world's two largest economies, are closely watched by international organizations and commissions, especially given the far-reaching implications of their trade negotiations for the global financial industry and world economy.
