The United States and China have agreed to a 90-day suspension of increased tariffs, signaling a restart of trade negotiations between the world's two largest economies. The agreement, reached on May 12, 2025, in Geneva, has been well-received by global financial markets.
Under the terms, the U.S. will reduce tariffs imposed last month from 145% to 30%. China will lower its tariff rate on U.S. goods to 10% from 125%. These reductions aim to provide a window for negotiators to achieve a more substantive long-term agreement.
Key Players
U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent represented the United States at the Geneva talks. China's Commerce Ministry views the agreement as a crucial step towards further cooperation and hopes for an end to unilateral tariff increases by the U.S.
Both nations recognize the importance of their economic relationship to the global economy. They intend to move forward with mutual respect and open communication. Further talks are planned, led by Vice Premier He Lifeng for China, and Secretary Bessent and Ambassador Greer for the U.S.