The United States and China have agreed to suspend major tariffs on goods from both countries for 90 days.
The deal, reached after intensive weekend talks in Geneva, Switzerland, was announced in a joint statement from both governments on Monday.
Under the agreement, the U.S. will cut tariffs on Chinese imports from 145% to 30%, while China will reduce its tariffs on American goods from 125% to 10%.
Both governments described the move as a show of progress and cooperation, and global markets responded positively to the news.
The joint statement states, “The Parties commit to take the following actions by May 14, 2025.
“The United States will suspend 24 percentage points of its additional tariffs on Chinese articles for an initial period of 90 days… China will likewise suspend 24 percentage points of its tariffs on U.S. goods for the same period,” the statement added.
Both nations emphasised the importance of a “sustainable, long-term, and mutually beneficial economic and trade relationship,” vowing to maintain dialogue through a newly established consultation mechanism led by high-ranking officials.
“These discussions may be conducted alternately in China and the United States, or in a third country upon agreement of the Parties,” the statement continued.
“As required, the two sides may conduct working-level consultations on relevant economic and trade issues. China will also adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States,” both countries said.
Speaking shortly after the announcement, U.S. Treasury Secretary Scott Bessent, who led the American delegation, confirmed the tariff pause in a press conference.
“We have reached an agreement on a 90-day pause after robust and constructive discussions. Both sides will reduce their tariffs by 115 percentage points, bringing the U.S. rate down to 30% and China’s to 10%. This is a meaningful step toward restoring confidence in the global economy,” he stated.
Bessent added that the talks marked “substantial progress” and laid the groundwork for a broader realignment of trade policies between the two economic giants.
Similarly, China’s Ministry of Commerce also affirmed the agreement, stating that “all tariff countermeasures taken against the United States since April 2, 2025, will be suspended.”
Going forward, the two sides will engage in dialogues, China will be represented by Vice Premier He Lifeng, while the U.S. will be represented by Secretary Bessent and U.S. Trade Representative Jamieson Greer.
