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US, China Announce 90-day Tariff Deal

The United States of America and China have resolved most of their issues, hatching a historic trade or tariff deal Monday May 12, 2025 ending months of tension and speculations.

Monday May 12, 2025 3:03 PM, Business Desk

[US Treasury Secretary Scott Bessent (L) and US Trade Representative Jamieson Greer speak to the media after the trade talks concluded between senior US and Chinese officials on May 11, 2025 in Geneva. (Image: X)]

The United States of America and China have resolved most of their issues, hatching a historic trade or tariff deal Monday May 12, 2025 ending months of tension and speculations.

In a joint statement released Monday, the U.S. and China said the two have agreed to roll back most of the tariffs and duties imposed on each others’ goods for 90-days.

U.S., China Tariff War

The United States and China had earlier announced more than 100% levies on goods moving from and coming in the two countries.

This all started with Donald Trump coming to office in January. Later in April, the U.S. President announced, what he called, reciprocal tariffs on all countries, including China, alleging them of exploiting the U.S. economic interests.

Trump started with, what he called, a punishing tariff of 34% including 10% base tariff on Chinese goods imported to the U.S.. China had back imposing equal tariffs on the U.S. exports to China.

Trump then announced another round of tariffs on China, China hit back with a tit for tat response, taking the tariffs to more than 145%.

The tariff war between the two countries shook the world economy, including the U.S. domestic market.

U.S. China Trade Deal

Finally, after a weekend of marathon trade negotiations in Geneva, Switzerland by officials from the world’s two largest economies, the deal was hatched to roll-back all the tariffs the two countries had announced on each other.

By May 14, the US will temporarily lower its tariffs on Chinese goods from 145% to 30%, while China will cut its levies on American imports from 125% to 10%, according to the joint statement, CNN reported.

The tariff roll-back will remain in place for an initial 90-day period.

Also Read: The Simmering Trade War Between U.S. and China

Both sides recognized “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship,” the White House said in a statement released today.

The two sides also agreed to establish “a mechanism to continue discussions about economic and trade relations,” led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, it said.

Quoting Jamieson Greer, the White House said the U.S. has a massive $1.2 trillion trade deficit which is why Trump had declared a “national emergency” and had imposed the tariffs.

“We’re confident that the deal we struck with our Chinese partners will help us to work toward resolving that national emergency”, Greer said.

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