Geneva, Switzerland – May 12, 2025 – In a promising turn of events that could brighten the outlook for the global economy, the United States and China have come to an agreement for a 90-day reduction in tariffs, putting a temporary stop to their escalating trade conflict. This announcement followed intense discussions in Geneva, hinting at a possible easing of the tensions that have been shaking up markets and supply chains around the world.

As part of this agreement, which is set to kick in by May 14, the U.S. will significantly cut its tariffs on Chinese imports from a hefty 145% down to a much more manageable 30%. In return, China has committed to slashing its tariffs on American goods from 125% to a much lower 10%. This mutual decision aims to lighten the load for businesses and consumers in both countries who have been feeling the pinch from these heightened trade barriers.

This truce comes after a period of rising tariffs that had seriously disrupted trade between the two largest economies on the planet. The current U.S. administration had been steadily increasing tariffs on a wide array of Chinese products, which led to retaliatory actions from Beijing against U.S. exports. This back-and-forth had raised alarms about stagflation and was starting to affect job growth in certain industries.

Leading the crucial negotiations in Geneva were U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, who were there to represent American interests. On the Chinese side, Vice Premier He Lifeng played a key role in bringing about this agreement. Both teams expressed their dedication to using this 90-day period to continue discussions aimed at finding a more comprehensive and lasting solution to their trade issues.

During a press conference in Geneva, Secretary Bessent highlighted the significance of the agreement, stating, "We have reached an agreement on a 90-day pause."