U.S., China cut deal to slash tariffs in trade war pause
Agreement slashes duties to 10% and sets 90-day timeline for further talks.
WASHINGTON — The United States and China announced a breakthrough trade deal Monday, agreeing to sharply reduce tariffs and pause retaliatory measures as both nations seek to end a costly trade war that has strained global markets.
Following high-level negotiations in Geneva, Treasury Secretary Scott Bessent said the two sides had committed to lowering reciprocal tariffs. U.S. levies on Chinese goods will fall to 30% from 145%, while China’s corresponding tariffs on U.S. imports will be cut to 10% from their earlier level of 125%. The two sides also agreed to enter a 90-day suspension of additional trade actions while further details can be worked out.
“Both countries represented their national interest very well,” Bessent told reporters after the meeting. “We both have an interest in balanced trade, and the U.S. will continue moving towards that.”
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The agreement, detailed in a joint statement from the White House and China’s State Council, marks a significant step toward repairing a relationship that had deteriorated rapidly after President Donald Trump imposed 145% tariffs on Chinese imports earlier this year, virtually halting $600 billion in annual trade between the countries.
While the White House confirmed the deal in a May 11 statement, it did not release specifics until after Monday’s talks concluded. According to the agreement, the U.S. will suspend 24 percentage points of the additional tariffs imposed under several April executive orders, retaining a 10% baseline rate for 90 days. China will reciprocate by adjusting its own tariff schedule and lifting non-tariff countermeasures enacted since April 2.
Both sides also pledged to continue discussions through a formal dialogue mechanism. China will be represented by Vice Premier He Lifeng, while Bessent and U.S. Trade Representative Jamieson Greer will lead the American delegation. Future talks may alternate between locations in the U.S., China or neutral countries.
The deal came together sooner than many observers expected and signals a willingness from both nations to seek common ground amid mounting economic pressure.
The 90-day window is expected to set the tone for whether a longer-term solution can be reached.
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