KUALA LUMPUR – The United States and China have announced a reduction in their reciprocal import tariffs after discussions in Geneva on Monday.
Under the new agreement, US tariffs on Chinese goods will be reduced to 30% from 145%, while Chinese tariffs on American imports will drop to 10% from 125%, according to Bernama.
This adjustment will remain in effect for an initial period of 90 days.
The decision was made “recognising the importance of their bilateral economic and trade relationship to both countries and the global economy,” as stated in a joint declaration from the White House.
The two largest economies in the world expressed their desire to move forward “in the spirit of mutual opening, continued communication, cooperation, and mutual respect,” according to the statement.
China also welcomed the 90-day tariff relief, noting that it would benefit both nations and the global economy. A statement from China’s Commerce Ministry emphasized that the reduction “aligns with the expectations of producers and consumers in both countries.”
This announcement followed the conclusion of the Geneva talks, which took place over the weekend.
The discussions were led by US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, with China’s Vice Premier He Lifeng at the helm of the negotiations.
The agreement marks a temporary easing of tensions in the prolonged trade conflict, with both parties hoping to pave the way for greater economic stability in the long run.
The Chinese Commerce Ministry further stated, “We hope that the US will continue to work with China to meet each other halfway based on this meeting, thoroughly correct the wrong practice of unilateral tariff increases, continuously strengthen mutually beneficial cooperation, maintain the healthy, stable and sustainable development of China-US economic and trade relations, and jointly inject more certainty and stability into the world economy.”
In addition to the tariff reductions, both sides have agreed to establish a new dialogue mechanism to sustain the momentum of their discussions. This will be led by Vice Premier He, Treasury Secretary Bessent, and Trade Representative Greer. – May 12, 2025