The United States and China have agreed to temporarily reduce tariffs on imports, signaling a step towards de-escalating trade war tensions. This agreement, reached after trade negotiations in Geneva, Switzerland, involves reciprocal tariff reductions for an initial 90-day period.
Effective mid-May 2025, the U.S. will lower tariffs on Chinese goods from 145% to 30%, while China will decrease its tariffs on U.S. products from 125% to 10%. Both countries aim to foster a sustainable and mutually beneficial economic relationship.
In addition to tariff adjustments, China will suspend non-tariff countermeasures imposed on the U.S. since April 2, 2025. This includes lifting restrictions on rare earth exports, crucial for U.S. industries like automotive, aerospace, and semiconductors. The agreement establishes a mechanism for continued discussions on economic and trade relations, led by key officials from both nations.