The two-day economic and trade talks between the United States and China in Geneva, Switzerland, concluded and a joint statement was issued on the 12th. Bloomberg reported on the 12th that the U.S. tariffs on Chinese goods will be reduced from 145% to 30% for 90 days. At the same time, China’s tariffs on U.S. goods will be reduced from 125% to 10%.
Bloomberg quoted a statement stating that the United States and China temporarily lowered tariffs on each other's products to ease trade tensions and give the world's two largest economies three months to resolve their differences. U.S. Treasury Secretary Scott Bessent said that the United States and China have reached an agreement on a 90-day suspension of tariffs. The two sides will reduce each other's retaliatory tariff rates by 115% within 90 days. The negotiations with China are constructive and both sides show high respect.
According to the White House statement, in view of the importance of the economic and trade relations between the two countries to the two countries and the global economy, and in recognition of the importance of establishing a sustainable, long-term, and mutually beneficial economic and trade relationship, in the spirit of mutual openness, continuous communication, cooperation and mutual respect, the two sides agreed to take the following actions before May 14, 2025:
From the United States:
1. According to Executive Order 14257 signed on April 2, 2025, the additional ad valorem rate of duty levied on goods originating in China (including Hong Kong and Macau) will be suspended at 24 percentage points for 90 days, but the remaining 10% of the ad valorem tax will be retained and will continue to be implemented in accordance with the terms of the above-mentioned administrative order.
2. Cancel the revised additional ad valorem tax rate imposed on the above-mentioned goods according to Executive Orders 14259 and 14266 promulgated on April 8 and 9, 2025.
From China:
1. According to Announcement No. 4 of the Customs Tariff Commission of the State Council of 2025, the additional ad valorem tax rate levied on U.S. goods will also be suspended at 24 percentage points for a period of 90 days, and the remaining 10% of the additional ad valorem tax will be retained; at the same time, the revised tax rates imposed according to Announcements No. 5 and 6 of 2025 will be cancelled.
2. Take all necessary administrative measures to suspend or withdraw the non-tariff countermeasures implemented against the United States since April 2, 2025.
After the above actions are implemented, the two sides will establish a mechanism for continuous consultation on economic and trade relations. The Chinese representative will be Vice Premier He Lifeng; the U.S. representatives will be Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. The consultation venue can be held alternately between China and the United States, or in a third country agreed by both parties. If necessary, the two sides can also hold working-level consultations on relevant economic and trade issues.
