US and China slash tariffs
The United States and China have mutually agreed to a 90 day reduction on tariffs implemented in April, marking a significant attempt to de-escalate the trade war between the world’s two largest economies.
The deal was hashed out by US and Chinese officials in Geneva over the weekend, and will see the US reducing duties on Chinese imports from 145 percent to 30 percent, and China lowering tariffs on US goods to 10 percent, down from 125 percent. This new agreement doesn’t change the removal of the de minimis exception on May 2nd, which closed the tariff loophole that allowed businesses like Temu and Shein to send goods under $800 into the US without any added duties at all.
“We concluded that we have a shared interest,” said Treasury Secretary Scott Bessent at a news conference in Geneva. “We want more balanced trade, and I think both sides are committed to achieving that. Neither side wants a decoupling.”
The 90-day pause is meant to provide the two countries time to negotiate a final trade deal.