On May 14, 2025, the USA and China reached an important agreement on the temporary reduction of mutual tariffs, which was a significant step towards de-escalating the ongoing trade war.

📉 Key Terms of the Agreement

The USA will reduce tariffs on Chinese goods from 145% to 30%.

China will reduce tariffs on American goods from 125% to 10%.

This reduction will be in effect for 90 days, starting from May 14, 2025, providing the parties with time for further negotiations and seeking a sustainable solution.

🤝 Context and Goals

The negotiations took place in Geneva, involving US Treasury Secretary Scott Bessent, Trade Representative Jamison Greer, and Vice Premier of the State Council of China He Lifeng. The parties emphasized the commitment to avoid an economic rupture and achieve a more balanced trade. Issues related to fentanyl and structural imbalances in trade were also discussed.