#TradeWarEases On May 12, 2025, the United States and China reached a significant agreement to de-escalate their ongoing trade war. Following high-level negotiations in Geneva, both nations consented to a 90-day pause during which they will substantially reduce tariffs on each other’s goods.  

Key Details of the Agreement

• Tariff Reductions: The U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce its tariffs on U.S. goods from 125% to 10%. 

• Temporary Nature: This agreement is set for a 90-day period, providing a window for further negotiations aimed at resolving deeper trade issues. 

• Sector-Specific Tariffs: Tariffs related to specific sectors, such as steel, automobiles, and fentanyl, remain under separate consideration and are not covered by this agreement.