A Temporary Peace: US and China Dial Back Tariffs Amid Ongoing Trade Talks
After months of escalating economic tensions, the United States and China have reached a tentative agreement to ease the tariff burdens that fueled a fierce trade conflict.
US Treasury representative Scott Bessent announced that both countries will implement a 90-day pause on certain tariffs starting May 14, following high-stakes negotiations in Geneva.
The trade battle, which intensified after former President Donald Trump declared April 2 a “Liberation Day” for American commerce, saw retaliatory tariffs skyrocket—reaching up to 145% on some Chinese imports and 125% on certain US goods.
Now, under the new agreement, those rates will be significantly reduced for the three-month pause. Chinese goods previously hit with 145% tariffs will now face 30%, while US products that endured 125% tariffs will be subject to just 10%.
The truce, however, doesn’t cover all fronts. US sanctions aimed at combating illicit fentanyl trade remain intact. Still, officials on both sides sounded cautiously optimistic about broader cooperation.
“We’re seeing progress on a path forward—particularly in addressing fentanyl-related trade,” noted US trade representative Jamieson Greer.
China’s Vice Premier He Lifeng echoed the sentiment, describing the discussions as “constructive” and signaling Beijing’s readiness to continue dialogue in good faith.
According to a joint statement shared with the BBC, the two economic powerhouses plan to establish a formal mechanism to maintain open trade communication moving forward. China’s Ministry of Commerce reaffirmed the commitment to mutual respect and cooperation as key to resolving ongoing disputes.
Whether this 90-day pause leads to a lasting resolution remains uncertain—but for now, tensions are cooling, and diplomacy is back on the table.
