US, China sign deal to roll back tariffs for 90 days

IANS May 12, 2025 190 views

The United States and China have reached a significant trade agreement to reduce tariffs for 90 days, marking a potential de-escalation of ongoing economic tensions. US Treasury Secretary Scott Bessent announced substantial tariff cuts, with both nations agreeing to dramatically lower trade barriers. The deal represents the first high-level face-to-face meeting since Donald Trump initiated global trade conflicts. This agreement signals a potential path toward constructive economic dialogue and mutual understanding between the two global economic powers.

"We are in agreement that neither side wants to decouple" - Scott Bessent, US Treasury Secretary
Geneva, May 12: US Treasury Secretary Scott Bessent announced here on Monday that an agreement has been reached with China, at the trade talks held here, for a bilateral reduction in tariffs with effect from May 14 for a 90-day period.

Key Points

1

US and China agree to 90-day tariff reduction

2

Tariffs drop from 145% to 30% for US goods

3

Bilateral talks to continue economic dialogue

4

Potential breakthrough in trade war tensions

The US will reduce tariffs on Chinese goods from 145 per cent to 30 per cent for 90 days, while China said it will cut tariffs on US goods from 125 per cent to 10 per cent for 90 days.

"We have reached an agreement on a 90-day pause and to substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115 per cent," Bessent said at a press conference.

"We had a very robust and productive discussion on steps forward on fentanyl. We are in agreement that neither side wants to decouple," he added.

According to a joint statement issued after the meeting, after taking the aforementioned actions, the two countries will establish a mechanism to continue discussions about economic and trade relations.

The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the U.S. side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the two Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues, the statement explained.

US Trade Representative Greer told journalists that "differences were not as large as maybe thought." Greer said the two sides are having constructive conversations on the issue of fentanyl.

"The deal we struck with our Chinese partners that will help reduce the $1.2 trillion U.S. global goods trade deficit," he added.

This was the first face-to-face meeting between high level US and Chinese officials since Donald Trump took over as President and triggered a global trade war with a massive hike in US tariffs as part of his America First policy.

Reader Comments

Here are 6 diverse Indian perspective comments on the US-China tariff deal:
R
Rajesh K.
This temporary truce between US-China trade war is good for global economy. But India must be careful - when these giants fight, we benefit from manufacturing shifting here. When they make peace, we lose that advantage. Make in India needs more push now! 🇮🇳
P
Priya M.
Interesting development but 90 days is too short! Both countries will just use this time to prepare for next round of trade battles. As an Indian consumer, I hope this brings down prices of electronics but not holding my breath 😅
A
Amit S.
China always plays the long game. They'll use these 90 days to strengthen their position while America thinks they've won something. India should learn from China's strategic patience in trade negotiations.
S
Sunita R.
The fentanyl discussion is most important part - China's chemical exports have caused so much damage worldwide. Hope India is watching this closely for our own drug control policies. Trade deals should consider public health impacts too.
V
Vikram J.
Temporary relief but fundamental issues remain. US-China trade war helped Indian exports in short term but we need stronger domestic manufacturing base. Atmanirbhar Bharat shouldn't depend on others' trade wars for growth.
N
Neha T.
The numbers sound dramatic (145% to 30%) but let's see actual impact. Many Chinese products still cheaper than Indian made alternatives even with high tariffs. Our quality and scale needs to improve to truly compete globally.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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Tags:
US-China Trade Deal Scott Bessent Tariff Reduction Trade Negotiations Donald Trump Economic Diplomacy
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