• China will suspend 24 percentage points of additional tariffs on US goods for 90 days, retaining a 10% duty.
  • The agreement follows intensive Geneva negotiations between US Treasury Secretary Scott Bessent and Chinese counterparts.
  • Both nations commit to establishing a formal mechanism for ongoing trade discussions, with implementation starting May 14.

Temporary Tariff Relief

In a significant de-escalation of recent trade tensions, China's Finance Ministry announced it would pause 24 percentage points of additional tariffs on US goods for 90 days, while maintaining a 10% duty. The move comes as part of a bilateral agreement reached during weekend negotiations in Geneva between US Treasury Secretary Scott Bessent and Chinese officials.

"This creates necessary breathing room for businesses while we work toward more permanent solutions," said one official familiar with the talks who requested anonymity due to the sensitivity of ongoing negotiations.

Reciprocal Reductions

The US will concurrently reduce its tariff levels on Chinese goods to approximately 30%, representing what Treasury Secretary Bessent called "a 115 percentage point reduction from both sides." The agreement marks a notable cooling of tensions that had escalated sharply since early April, when both nations implemented successive rounds of tariffs.

China has also committed to suspending non-tariff countermeasures implemented since April 2, though details of these measures weren't specified in the joint statement. The tariff reductions are scheduled to take effect by May 14, just two days after the agreement was announced.

Institutional Framework

A new discussion mechanism will be established, with China represented by Vice Premier He Lifeng and the US by both Bessent and Trade Representative Jamieson Greer. Meetings may alternate between the two countries or neutral locations, according to the agreement.

Market observers noted the 90-day window creates urgency for substantive progress while providing immediate relief to affected industries. "This isn't a solution, but it's the first real step back from the brink we've seen in weeks," commented a trade analyst at a European bank who asked not to be named.

Editor's Note: This article was updated to clarify that the 24 percentage point suspension applies to additional tariffs, not the base rate.