Historic Agreement Reached

In a landmark decision, the United States and China have agreed to significantly reduce the tariffs imposed on each other's goods. This agreement, reached on May 11, 2025, in Geneva, Switzerland, marks a pivotal moment in U.S.-China trade relations.

Details of the Agreement

Over the next 90 days, China will lower tariffs on U.S. products from 125% to 10%, while the U.S. will reduce tariffs on Chinese goods from 145% to 30%. This negotiation, the first since the tariff war initiated by the second Trump administration, was conducted over two days in Geneva.

Statements from Officials

U.S. Treasury Secretary Scott Bessant highlighted the agreement's significance, stating, "The two countries have agreed to freeze tariffs for 90 days, with both sides reducing tariffs by 115 percentage points." The measures are set to take effect on May 14.

Background and Implications

The agreement comes after a series of retaliatory tariff increases by both nations, which saw tariffs exceed 100%. The joint statement includes a suspension of the mutual 24 percentage points tariffs for 90 days, aiming to stabilize trade relations.

Future Discussions

Both countries have also agreed to establish a mechanism for ongoing discussions on economic and trade issues, involving high-level representatives from both sides. These discussions may take place in various locations, including third countries, to further ease tensions and foster cooperation.