• U.S. Trade Representative Jamieson Greer indicates a potential extension or deepening of the current tariff pause if ongoing negotiations yield positive concessions.
  • The U.S. and China recently agreed to a 90-day pause, lowering certain retaliatory tariffs by 115% while maintaining a 10% baseline, a move that has set a new precedent for bilateral talks.
  • With the average U.S. applied tariff now at a century-high of 27%, the administration's strategy aims to reduce the $1.2 trillion trade deficit, though it risks inflationary pressures and supply chain disruptions.

U.S. Trade Representative Jamieson Greer stated on Tuesday that the administration is "open to considering further action on tariffs pause if talks are positive," signaling a notable shift towards flexibility as trade negotiations with several partners show tangible progress. This stance marks a potential de-escalation from the aggressive tariff posture that has defined recent policy, which has pushed the average applied tariff to 27% as of April 2025—the highest level in over a century.

The comments come just weeks after the U.S. and China concluded a key round of talks in Geneva, resulting in a bilateral agreement to lower certain retaliatory tariffs by 115% for a 90-day period, effective May 14, 2025. The deal maintains a 10% baseline tariff on a wide range of goods, creating a temporary truce that officials hope will lead to a more durable framework. According to people familiar with the negotiating strategy, the U.S. is using the pause as a test of goodwill, with the possibility of further extensions if trading partners offer meaningful concessions on market access and intellectual property protections.

Greer’s remarks suggest the administration is willing to adapt its approach based on the outcomes of these high-stakes discussions. "Our goal has always been reciprocal and fair trade," a spokesperson for the Office of the U.S. Trade Representative said when reached for comment. "The tools we use, including tariffs, are means to that end—not ends in themselves."

Despite this newfound openness, the U.S. continues to enforce a 10% tariff on most imports, with individualized and significantly higher rates applied to 50 countries deemed to have "unfair" trade relationships. Key sectors such as steel, aluminum, and household appliances have faced rates as high as 50%, prompting retaliatory measures from trading partners and contributing to global market volatility.

The policy has drawn mixed reactions domestically. Manufacturing groups and labor unions have largely supported the administration’s efforts to reshore industry and protect jobs, citing a modest rebound in some sectors. Conversely, import-dependent industries and consumer advocates warn that the costs are being passed down the supply chain, potentially exacerbating inflationary pressures. A major retail association, which asked not to be named due to the sensitivity of ongoing talks, said its members are "cautiously hopeful" that the pause could lead to greater predictability.

Looking ahead, the short-term trajectory of U.S. trade policy appears tightly linked to the success of these bilateral negotiations. Should talks with China and other major partners continue on a positive track, further tariff relief seems plausible. However, officials have been careful to note that the administration retains the right to increase tariffs if it perceives a lack of cooperation or if partners retaliate. This conditional approach ensures that the coming months will be critical for businesses navigating the new landscape of global trade.