US cuts tariff on Chinese goods to 30% for 90 days

May 12, 2025 (MLN): The United States and China on Monday reached a significant agreement to suspend most tariffs on each other’s goods, signaling a notable easing of trade tensions between the world’s two largest economies.

Under the new arrangement, reciprocal tariffs imposed by both nations will be reduced from 125% to 10%.

However, the U.S. will maintain its 20% duties on Chinese imports related to fentanyl, keeping the total U.S. tariff rate on China at 30%.

The development follows a series of high-stakes negotiations over the weekend in Lake Geneva, Switzerland, between trade representatives from both countries, as CNBC reported.

U.S. Treasury Secretary Scott Bessent, speaking at a press conference, described the discussions as highly productive.

“We had very productive talks, and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process,” Bessent stated.

He added, “We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%.”

The 90-day suspension and reduction in tariffs are seen as a breakthrough in easing the prolonged trade conflict, which had seen tit-for-tat measures significantly impact global markets.

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