China and the US Implement Temporary Tariff Suspension Amid Trade Tensions
A 90-day pause in tariffs marks a noteworthy development in the ongoing trade war between the two global economic giants.
On May 14, 2025, the United States and China announced a significant temporary suspension of their tariffs, which have strained global supply chains and international markets.
The agreement, implemented at 04:01 GMT, comes as a result of two days of negotiations held in Geneva.
As part of this deal, the U.S. will reduce its tariffs on Chinese goods from 30% to 30%, while China will lower its tariffs on American goods from 20% to 10%.
The announcement was welcomed by markets, generating cautious optimism regarding future trade relations.
United States Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer spoke at a press conference following the negotiations, stating that this truce signifies a breakthrough in the trade discourse between the two nations.
In a related statement, President Donald Trump expressed confidence in reaching a robust agreement with China and indicated the necessity for China to open its markets further.
Trump, currently on a diplomatic tour in the Middle East, emphasized that the arrangement includes conditions for China to enhance market accessibility.
Moreover, the suspension entails the lifting of certain non-tariff barriers imposed by China against American companies, including the prohibition on airlines from using Boeing aircraft.
The Chinese government also announced the suspension of countermeasures against 17 American entities that were previously restricted from engaging in import, export, or new investments in China.
In a reciprocal move, the U.S. administration has lifted proposed restrictions on the export of semiconductor technology used for artificial intelligence development, which had the potential to disadvantage Chinese companies.
Despite the temporary relief in tariffs, tensions linger between Washington and Beijing, particularly regarding the drug fentanyl, which continues to impact American public health significantly.
The U.S. maintains punitive tariffs as leverage to pressure China into cooperating on combating the trafficking of this opioid.
Chinese Foreign Ministry representatives have responded to accusations from the U.S., urging an end to what they describe as unfair blame, while describing the existing tariffs as unreasonable.
Furthermore, Chinese President Xi Jinping spoke at a diplomatic event in Beijing, denouncing trade practices he alleges are hegemonic, warning that no nation can ultimately benefit from a trade war.
China's Foreign Minister Wang Yi called for solidarity among Latin American nations to resist what he termed intimidation tactics.
The potential for the reinstatement of tariffs looms large even amid this détente, with economic analysts suggesting that the road to further tariff reductions may be fraught with challenges.
The governor of the Bank of France criticized these agreements and urged Europe to seek broader trade alliances that would sidestep punitive tariffs.
The agreement, implemented at 04:01 GMT, comes as a result of two days of negotiations held in Geneva.
As part of this deal, the U.S. will reduce its tariffs on Chinese goods from 30% to 30%, while China will lower its tariffs on American goods from 20% to 10%.
The announcement was welcomed by markets, generating cautious optimism regarding future trade relations.
United States Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer spoke at a press conference following the negotiations, stating that this truce signifies a breakthrough in the trade discourse between the two nations.
In a related statement, President Donald Trump expressed confidence in reaching a robust agreement with China and indicated the necessity for China to open its markets further.
Trump, currently on a diplomatic tour in the Middle East, emphasized that the arrangement includes conditions for China to enhance market accessibility.
Moreover, the suspension entails the lifting of certain non-tariff barriers imposed by China against American companies, including the prohibition on airlines from using Boeing aircraft.
The Chinese government also announced the suspension of countermeasures against 17 American entities that were previously restricted from engaging in import, export, or new investments in China.
In a reciprocal move, the U.S. administration has lifted proposed restrictions on the export of semiconductor technology used for artificial intelligence development, which had the potential to disadvantage Chinese companies.
Despite the temporary relief in tariffs, tensions linger between Washington and Beijing, particularly regarding the drug fentanyl, which continues to impact American public health significantly.
The U.S. maintains punitive tariffs as leverage to pressure China into cooperating on combating the trafficking of this opioid.
Chinese Foreign Ministry representatives have responded to accusations from the U.S., urging an end to what they describe as unfair blame, while describing the existing tariffs as unreasonable.
Furthermore, Chinese President Xi Jinping spoke at a diplomatic event in Beijing, denouncing trade practices he alleges are hegemonic, warning that no nation can ultimately benefit from a trade war.
China's Foreign Minister Wang Yi called for solidarity among Latin American nations to resist what he termed intimidation tactics.
The potential for the reinstatement of tariffs looms large even amid this détente, with economic analysts suggesting that the road to further tariff reductions may be fraught with challenges.
The governor of the Bank of France criticized these agreements and urged Europe to seek broader trade alliances that would sidestep punitive tariffs.
