The United States and China announced a joint agreement on Monday, May 12, to reduce and suspend a majority of the tariffs imposed on each other over the past month, beginning May 14. The announcement followed two days of talks in Geneva, Switzerland, between U.S. and Chinese trade officials.
The joint statement emphasized a commitment to “mutual opening, continued communication, cooperation, and mutual respect” in an effort to deescalate trade tensions and create a path toward a more sustainable economic relationship.
Key Provisions of the Agreement:
Tariff Rollbacks: Both sides will reduce recently imposed tariff rates by 115 percentage points. The U.S. will lower its tariff rate on Chinese goods from 145% to 30%. China will cut its reciprocal tariff rate on U.S. goods from 145% to 10%.
Suspension Period: The adjusted rates will remain in effect for an initial 90-day period, during which the two countries will continue trade negotiations.
China’s Commitments:
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Suspend its 34% tariff imposed on April 4, 2025, and retain a 10% baseline tariff for 90 days.
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Remove additional retaliatory tariffs announced since April 4, 2025.
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Suspend or remove non-tariff countermeasures introduced since April 2, 2025, including export restrictions and limits on U.S. firms operating in China.
U.S. Commitments:
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Suspend its 34% reciprocal tariff imposed on April 2, 2025, and retain a 10% baseline tariff during the pause.
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Remove additional tariffs introduced under Executive Orders 14259 (April 8) and 14266 (April 9).
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Maintain pre-April 2 tariffs, including those enacted under Section 301, Section 232, and the International Emergency Economic Powers Act.
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Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer stated the agreement avoids a near-complete shutdown in bilateral trade, which they described as economically damaging for both nations. “Neither side wants a decoupling,” Bessent said. “We do want trade.”
Next Steps:
The agreement outlines a plan for continued discussions led by Vice Premier He Lifeng for China, and Secretary Bessent and USTR Greer for the U.S. Talks may be held in either country or at a mutually agreed third-party location. Working-level consultations are expected to begin within weeks.
The Chinese Commerce Ministry described the agreement as “an important step” toward resolving trade tensions and called on the U.S. to halt unilateral tariff actions.
The 90-day truce will serve as a window for both sides to seek a longer-term solution. President Trump stated that if a deal is not reached within that timeframe, tariffs could be raised again, although not to the previously imposed 145% level.
Read More: U.S.-China Joint Statement, The White House Fact Sheet
Sources: CBC News, Global News, NCBFAA