#TradeWarEases Trade War Eases: US and China Agree to Tariff Reductions

* Temporary Tariff Suspension: The United States and China have agreed to temporarily roll back some of the tariffs they have imposed on each other. This agreement was reached on Monday, May 12, 2025, following two days of trade talks in Geneva, Switzerland.

* Duration: This tariff reduction is for an initial period of 90 days.

* Reciprocal Reductions: Both countries will reduce their tariffs significantly.

* The US will suspend 24 percentage points of its additional duties on Chinese goods, bringing the tariff rate down to 30% from as high as 145% on some goods. This includes rolling back tariffs imposed by executive orders in early April on a wide range of Chinese imports, including those from Hong Kong and Macau.

* China will similarly reduce its duties on US imports by 24 percentage points, resulting in a 10% tariff, down from a peak of 125%. China will also suspend or remove non-tariff countermeasures taken against the US since April 2, 2025.

* Continued Negotiations: This temporary easing of tensions aims to facilitate further negotiations between the two countries to achieve a more lasting resolution to the trade conflict. They have agreed to establish a mechanism for continued discussions on economic and trade relations, with designated officials leading the talks.

* Recognition of Importance: Both Beijing and Washington acknowledged the significance of their bilateral economic and trade relationship for their own economies and the global economy. They expressed a commitment to move forward with mutual opening, continued communication, cooperation, and mutual respect.