In a significant step toward easing trade tensions, the United States and China have announced a 90-day rollback of tariffs on each other’s goods, effective May 14, 2025. The agreement, reached after intensive negotiations in Geneva, aims to de-escalate a trade war that has strained global markets and supply chains.
Under the deal, the U.S. will reduce tariffs on Chinese imports from 145% to 30%, while China will lower its tariffs on U.S. goods from 125% to 10%. The U.S. will maintain its 20% fentanyl-related tariffs on China, citing ongoing concerns. Both nations expressed optimism about the temporary truce, with plans to negotiate a longer-term trade framework before the 90-day period ends.
The announcement sparked immediate market optimism, with U.S. stock futures rising in early trading. Analysts view the move as a pragmatic effort to avoid economic decoupling, though unresolved issues, including technology transfers and intellectual property, loom large.
Officials from both sides emphasized the need for continued dialogue to address remaining trade barriers. The world watches as the two economic giants navigates this critical juncture.
