U.S.-China agreement lowers tariffs for now
- The United States and China agreed in May 2025 in Switzerland to temporarily reduce tariffs to ease economic tensions.
- The tariff reductions came after prolonged and urgent discussions aimed at easing years of growing trade tensions, led by the U.S. Treasury chief and China’s Deputy Premier.
- The U.S. Will lower tariffs on Chinese goods from 145% to 30%, while China cuts retaliatory tariffs from 125% to 10% for 90 days and suspends related non-tariff barriers.
- Scott Bessent described the talks as “very productive,” and stock markets rallied significantly, with the Dow rising 1,113 points and tech shares like Tesla and Apple gaining 6%.
- These temporary tariff cuts provide relief and a platform for continued trade talks but leave long-term economic outcomes uncertain and tariffs subject to reinstatement after 90 days.
15 Articles
15 Articles
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Our most-read: With China, tariff cuts and a new communications channel
Top stories from the past week. U.S.-China talks yield big tariff cuts while talks continue. The U.S. and China agreed to a 90-day pause on most recently imposed tariffs, opting to de-escalate their burgeoning tariff war while negotiations continue. Both sides, concluding two days of high-level talks in Geneva, dropped tariff levels 115 percent. Levies in place before the recent escalation will remain in place. Negotiators (the U.S. side led b…
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