The United States and China have reached an agreement to temporarily reduce their mutual tariffs, with the US lowering its rate to 30% and China reducing its duties to 10%, according to the US Trade Representative on Monday.
AFP reported that after a weekend of trade discussions in Geneva, US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced the agreement to roll back “reciprocal tariffs” by 115 percentage points for a 90-day period.
The temporary agreement aims to de-escalate the prolonged trade war that has unsettled global markets, marking a significant step toward resolving tensions between the two economic superpowers.
– New US duties: 30% –
Washington has decided to lower tariffs on Chinese goods, reducing the additional 145% announced by President Donald Trump in April to 30%. This rate will still be applied in addition to pre-existing duties.
The revised figure incorporates a 20% tariff imposed by Trump as part of efforts to pressure Beijing to take stronger action against fentanyl trafficking, which has fueled an addiction crisis in the United States.
– New Chinese duties: 10% –
Beijing, which had previously responded to Trump’s tariffs with retaliatory duties of 125% on U.S. imports, has agreed to reduce them to 10%.
Both nations have mutually agreed to lower their respective tariffs by 115 percentage points.
– 90 days –
The temporary agreement established in Geneva will come into effect on May 14, lasting for a duration of 90 days.
Both parties committed to ongoing discussions, emphasizing a “spirit of mutual openness, continuous dialogue, collaboration, and mutual respect.”
– Tariff spiral –
The world’s two largest economies had been locked in an intensifying cycle of reciprocal tariff measures since Donald Trump resumed office in January.
Trump initiated his new term by imposing an additional 10% tariff on Chinese goods, which was soon increased to 20% in response to China’s involvement in fentanyl production.
On April 2, during the announcement of his “Liberation Day” tariffs, Trump introduced a further 34% levy on Chinese imports.
China responded with a matching 34% tariff on U.S. goods, prompting Trump to escalate U.S. tariffs to 104%.
In retaliation, China raised its tariff to 84%, leading Trump to counter with a 125% tariff.
Including the separate fentanyl-related tariff, U.S. duties on Chinese goods had surged to a total of 145% by April 10.