US, China agree to slash trade tariffs for 90 days
May 12, 2025 01:34 PM IST
“We have reached an agreement on a 90-day pause,” US Treasury Secretary Scott Bessent told reporters after both the sides issued the statement.
he US and China will temporarily lower tariffs on each other’s products, according to a joint statement, in a move to cool trade tensions and give the world’s two largest economies three more months to resolve their differences.
US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after talks between senior US and Chinese officials on tariffs.(AFP)
The combined 145% US levies on most Chinese imports will be reduced to 30% including the rate tied to fentanyl by May 14, while the 125% Chinese duties on US goods will drop to 10%, according to the statement and officials in a briefing Monday in Geneva.
“We are in agreement that neither side wants to decouple,” Treasury Secretary Scott Bessent said, adding that “we had a very robust and productive discussion on steps forward on fentanyl” and that talks might lead to “purchasing agreements” by China.
Bessent added that the tariff reductions announced today don’t apply to sectoral duties imposed on all US trading partners, and the tariffs applied on China during the first Trump administration remain in place.
Equity markets in Asia and Europe rose after the announcement, and S&P 500 futures jumped 3%. Oil prices increased, Treasury yields gained and the dollar was stronger. The offshore yuan extended gains against the dollar, rising about 0.5%.
The US statement also said “the parties will establish a mechanism to continue discussions about economic and trade relations.”
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