90-Day Reduction on Tariffs Agreed by U.S. and China
By The United States and China have reached a 90-day reduction on tariffs, which represents a historic step to alleviate escalating trade tensions between the two largest economic powers in the world.
The agreement, which was reached over the weekend in Geneva, will result in U.S. tariffs on Chinese imports being reduced from 145% to 30% and China’s tariffs on U.S. products being reduced from 125% to 10%. The purpose of the reduction is to create space for both parties to negotiate a more permanent trade agreement.
Despite this temporary truce, the removal of the de minimis exception on May 2nd remains in place as the change to policy eliminated the tariff exemption for inquiries under $800, affecting companies like Temu and Shein that were reliant on small-package exemptions.
The United States Treasury Secretary Scott Bessent put an emphasis on cooperation:
“We concluded that we share mutual interest. We would like to have more balanced trade, and I believe both sides are committed to that. Neither side would like to see a decoupling.”
Experts see the move as more of a tactical pause than a complete resolution. The 90-day reduction on tariffs window allows both countries to agree on some of the long-standing conflicts related to tariffs, intellectual property, and access to markets.
