US Trade Representative Greer says US and China to roll back most tariffs

Published: Monday, May 12, 2025 at 8:58 am

US and China Agree to Tariff Rollback, Easing Trade Tensions

In a significant development for the global economy, the United States and China have agreed to roll back a majority of their recently imposed tariffs, signaling a de-escalation in their ongoing trade dispute. This agreement, announced Monday, has already sent positive ripples through global markets, with stock indexes experiencing notable gains.

U.S. Trade Representative Jamieson Greer confirmed the deal, which includes a 90-day pause in further tariff escalations to allow for continued negotiations. The U.S. will reduce its tariff rate on Chinese goods by 115 percentage points, bringing it down to 30%. China, in turn, will lower its tariffs on U.S. goods by a similar margin, to 10%. This represents a significant shift from the recent escalation, where tariffs had reached levels that effectively amounted to a trade boycott between the two economic giants.

The announcement, made at a news conference in Geneva by Greer and U.S. Treasury Secretary Scott Bessent, follows a period of heightened trade tensions. Last month, President Donald Trump increased U.S. tariffs on China to a combined 145%, prompting retaliatory measures from China, which imposed a 125% levy on American imports. The disruption to trade, which exceeded $660 billion last year, had been a major concern for businesses and investors worldwide.

The market response has been overwhelmingly positive. U.S. futures jumped more than 2% immediately following the announcement. Hong Kong's Hang Seng index surged nearly 3%, and benchmarks in Germany and France also saw gains. This positive reaction underscores the relief felt by investors and the potential for a more stable global economic environment.

BNN's Perspective: While this agreement is a welcome step towards resolving the trade dispute, it's important to remain cautious. The 90-day pause provides a window for further negotiations, but the underlying issues remain complex. The success of this agreement hinges on both sides making meaningful concessions and finding common ground on key trade practices. The potential for future disagreements and renewed tensions remains, but this is a positive development that should be cautiously welcomed.

Keywords: US China trade, tariffs, trade war, tariff rollback, Jamieson Greer, Scott Bessent, stock market, global economy, trade dispute, President Donald Trump, trade negotiations, Geneva, Hong Kong Hang Seng, trade agreement, economic impact

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