US, China agree to lower tariffs for 90 days

Published: Monday, May 12, 2025 at 3:54 pm

US and China Agree to Temporary Tariff Reduction in Trade War

In a surprising move, the United States and China have agreed to a 90-day reduction in tariffs as they work towards a broader agreement to end the ongoing trade war. This temporary truce, announced on Monday, will see U.S. tariffs on Chinese goods fall to 30% from the previous 145%. Simultaneously, China will lower its tax on U.S. imports to 10% from 125%. The new rates were slated to take effect on Wednesday.

The announcement, made in Geneva, was led by U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. Both sides emphasized a shared interest in avoiding a complete economic decoupling. The news was met with positive reactions in Asian markets and U.S. futures, signaling optimism about the potential for a more comprehensive trade deal. However, some analysts remain cautious, suggesting the agreement is a temporary measure to prevent a global recession.

This temporary reduction offers a brief respite from the escalating trade tensions that have impacted global markets and supply chains. While the agreement is a positive step, the long-term implications of the trade war remain uncertain.

BNN's Perspective: This temporary tariff reduction is a welcome development, offering a glimmer of hope for a more stable global economy. While the agreement is a positive sign, it's crucial to remember that it's a short-term solution. The real test will be whether the two nations can reach a lasting agreement that addresses the underlying issues driving the trade war. A balanced approach, focusing on fair trade practices and mutual economic benefit, is essential for long-term stability.

Keywords: US China trade war, tariffs, tariff reduction, trade agreement, China tariffs, US tariffs, Scott Bessent, Jamieson Greer, global economy, trade tensions, economic decoupling, global recession, Asian markets, Donald Trump, trade deal

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