US, China accomplish tariff agreement
(MENAFN) The United States and China have agreed to roll back or suspend the majority of new tariffs imposed since early April, according to a joint statement released on Monday. The move follows two days of negotiations in Geneva over the weekend and marks a significant de-escalation in trade tensions between the two economic powers.
As part of the agreement, the US will suspend for 90 days the 34% tariffs introduced by President Donald Trump on April 2, and China will reciprocate with a pause on its equivalent tariffs. Both nations will also reverse additional tariff increases imposed after April 8. However, a baseline 10% tariff on goods from each country will remain in effect. For now, total US tariffs on Chinese imports will stand at 30%, while China’s will remain at 10%.
In addition, Beijing has agreed to relax certain non-tariff measures, including export restrictions on American products. These changes will take effect starting May 14. The two sides also plan to establish a consultation mechanism to facilitate ongoing trade discussions.
The joint statement emphasized the mutual value of the US-China economic relationship and a commitment to continued communication, cooperation, and mutual respect.
The agreement comes after tensions spiked on April 2, when Trump imposed broad tariffs affecting over 90 countries, citing unfair trade practices. China swiftly retaliated, sparking a tit-for-tat escalation that pushed tariffs to extreme levels—up to 145% on some US imports and 125% on Chinese goods. The standoff created major instability in global markets.
US Treasury Secretary Scott Bessent described the Geneva talks as “productive,” while Trade Representative Jamieson Greer noted that the speed of the deal suggested the gap between the two sides wasn’t as wide as previously thought. China’s lead negotiator, Vice Commerce Minister Li Chenggang, echoed the positive tone, calling the discussions “honest, constructive, and respectful.”
President Trump celebrated the outcome on Truth Social, calling it a “very good” meeting and suggesting it marked a “total reset” in US-China relations.
Markets responded positively to the announcement. In the US, Dow futures rose 1.1%, S&P 500 futures climbed 1.5%, and Nasdaq futures jumped 2.1%. Chinese indices also rallied, with the CSI 300 rising 0.6%, the Shanghai Composite up 0.4%, and Hong Kong’s Hang Seng Index gaining 0.9%.
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