- China will reduce tariffs on US imports starting May 14 as part of a 90-day bilateral agreement.
- Both nations will suspend 24 percentage points of recent tariff hikes, maintaining a 10% baseline rate.
- The deal offers temporary relief to exporters and supply chains after April's 145% US and 125% Chinese tariffs.
A Thaw in Trade Tensions
China's Ministry of Finance confirmed it will adjust tariff rates on US goods effective May 14, marking a tactical de-escalation following Geneva negotiations. The agreement suspends 24 percentage points of both nations' most recent retaliatory tariffs for 90 days, preserving a 10% floor on affected products. Non-tariff measures imposed since early April 2025 will also be rolled back.
The compromise follows weeks of economic brinkmanship that saw US tariffs on Chinese goods peak at 145% last month, with Beijing retaliating via 125% duties on key American exports. "This creates breathing room for businesses on both sides," noted an Asian trade policy advisor who requested anonymity due to ongoing negotiations. Agricultural and manufacturing lobbies had warned of mounting losses as supply chains buckled under the weight of April's measures.
Calculated Concessions
While the Trump administration is framing the tariff pullback as a strategic win, the 10% residual rate signals both nations are maintaining defensive positions. Analysts suggest the temporary nature of the deal reflects lingering distrust, with one Geneva-based trade attorney noting "the agreement buys time, but doesn't resolve structural disputes."
Market reaction was cautiously positive, with S&P 500 futures rising 0.8% after the announcement. Chinese officials emphasized their "reciprocal" approach in a brief statement, adding that further negotiations would depend on "mutually respectful implementation." Attempts to reach US Trade Representative officials for comment were unsuccessful.
Correction: An earlier version misstated the duration of the tariff suspension period. It is 90 days, not 60.