US and China Agree to Temporary 90-Day Tariff Reduction, Slash Rates by Over 100%
On 12 May 2025, the United States and China agreed to temporarily reduce tariffs, easing bilateral trade tensions during a 90-day period. In a Joint Statement, both countries outlined the terms of the agreement following negotiations held in Geneva, Switzerland.
Under the agreement, beginning 14 May 2025, both countries will reduce their respective tariff rates on each other's goods by 115% for 90 days. As a result, the overall tariff rate of 145% will fall from 145% to 30%, while China's rate on US goods will decrease from 125% to 10%.
More specifically, the United States will suspend 24% of additional tariffs imposed on 2 April 2025, and eliminate tariffs imposed on 8 and 9 April 2025. China will similarly suspend 24% of tariffs introduced under Announcement No. 4 (4 April 2025), remove additional measures from Announcements No. 5 and No. 6, remove retaliatory tariffs and suspend non-tariff countermeasures adopted since 2 April 2025.
Despite the reductions, both countries will retain a 10% baseline tariff during the 90-day period, with the United States maintaining pre-April 2025 tariffs including section 301 and 232 tariffs, and duties imposed in response to the fentanyl national emergency.
In a Fact Sheet, the White House described the deal as a "historic trade win" for the United States. The development also marks the first joint statement of the United States and China on trade in many years.
As of date of publication, China has not issued any official document confirming the joint statement.
Note: The trade deal comes after a series of aggressive US tariff actions introduced under President Trump's trade policy agenda, aimed at protecting domestic industries from what he characterized as unfair international competition.
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