US and China Agree to 90-Day Tariff Truce, Slash Duties Amid Hopes of Trade Deal
US Treasury Secretary Scott Bessent revealed that the US would reduce tariffs on Chinese imports from 145% to 30%, while China will slash tariffs on American goods from 125% to 10% during the 90-day window.
In a significant development, the United States and China have agreed to a 90-day pause on key tariffs as part of ongoing negotiations aimed at resolving their long-standing trade dispute. Both nations announced a reciprocal and temporary reduction in existing tariff rates, marking the most substantial progress in bilateral trade relations in recent months.
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Tariff Cuts: From Triple Digits to Double
US Treasury Secretary Scott Bessent revealed that the US would reduce tariffs on Chinese imports from 145% to 30%, while China will slash tariffs on American goods from 125% to 10% during the 90-day window. Both sides agreed to cut tariff levels by 115 percentage points, signalling a commitment to de-escalation.
“We have reached an agreement on a 90-day pause and substantially moved down the tariff levels,” Bessent said, calling the talks “productive” and filled with “great respect.”
Joint Statement Outlines Immediate Actions
A joint statement from both governments committed to implementing the following measures by May 14, 2025:
- United States:
- Suspend 24 percentage points of tariffs imposed by Executive Order 14257.
- Fully remove tariffs set forth in Executive Orders 14259 and 14266.
- China:
- Suspend 24 percentage points of tariffs outlined in Announcement No. 4 of 2025.
- Remove tariffs imposed by Announcements No. 5 and 6.
- Lift non-tariff countermeasures introduced since April 2, 2025.
Greer Hints at Imminent Deal
US Trade Representative Jamieson Greer said the rapid progress in talks indicates that differences between the two nations may not have been as vast as previously believed.
“It’s important to understand how quickly we were able to come to agreement,” said Greer. “We’re confident this deal will help us work towards resolving the trade imbalance.”
The US trade deficit with China stood at a record $263 billion last year — a key concern for the Trump administration, which has made narrowing the trade gap a top priority.
A Trade War With Global Consequences
The breakthrough comes after months of escalating trade tensions. Since January, President Donald Trump had raised tariffs to historic levels, extending the policies initiated during his first term and continued by President Biden. In retaliation, China imposed heavy duties and export restrictions on rare earth minerals, essential to the US tech and defence sectors.
The tariff war had crippled nearly $600 billion in trade, sparked fears of stagflation, disrupted global supply chains, and led to job losses, according to a Reuters report.
Outlook: 90 Days to Reset Relations?
While this agreement is temporary, it provides a critical window for both countries to finalize a broader trade framework. With duties sharply reduced and goodwill statements issued, observers remain cautiously optimistic that a comprehensive deal could follow in the coming weeks.
