US and China announce agreement to cut reciprocal tariffs for 90 days

Published: Monday, May 12, 2025 at 11:19 am

US and China Agree to Tariff Truce, Pausing Trade War for 90 Days

In a significant development, the United States and China have agreed to a 90-day pause in their escalating trade war, according to a joint statement released on Monday. The agreement, reached after weekend talks in Geneva, Switzerland, aims to de-escalate tensions and pave the way for broader trade negotiations.

The core of the deal involves a reduction in reciprocal tariffs. Both sides will lower their tariffs to 10% for the duration of the pause. Currently, the effective tariff on Chinese goods entering the U.S. will be 30%, while China's effective tariffs will be at 10%. This marks a substantial decrease from the tariffs imposed since President Trump's "Liberation Day" measures in April, which triggered a trade war that rattled global markets and sparked recession fears.

Treasury Secretary Scott Bessent confirmed the agreement, stating that both nations would "substantially move down the tariff levels." U.S. Trade Representative Jamieson Greer emphasized the importance of the agreement, highlighting the mutual commitment to a sustainable economic relationship. China's official state news agency, Xinhua, reported that the two sides will establish a mechanism for ongoing discussions, potentially alternating between the U.S., China, or a third country.

The announcement follows two days of talks that both sides described as successful, with Chinese Vice Premier He Lifeng noting "substantial progress" and "important consensus." The changes are expected to come into effect by Wednesday.

BNN's Perspective: This temporary truce is a welcome development, offering a much-needed respite from the economic uncertainty caused by the trade war. While the 90-day pause provides a window for further negotiations, the underlying issues remain. A comprehensive, long-term agreement is crucial to ensure stability and foster a mutually beneficial economic relationship between the U.S. and China. The success of this pause hinges on both sides' willingness to compromise and address the core concerns driving the trade dispute.

Keywords: US China trade war, tariff truce, reciprocal tariffs, 90-day pause, Geneva talks, trade agreement, Donald Trump, Scott Bessent, Jamieson Greer, He Lifeng, trade negotiations, economic relations, China tariffs, US tariffs, global markets, recession fears.

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