In a significant step towards easing global trade tensions, the United States and China have agreed to suspend a major portion of the tariffs imposed on each other and reinitiate formal trade negotiations. The decision follows a high-level economic and trade meeting held in Geneva, where both nations acknowledged the need to stabilize their bilateral relationship amid growing global economic uncertainty.
In a joint statement issued on May 12, both governments committed to a 90-day suspension of 24 percentage points of additional ad valorem tariffs imposed since early April 2025. The move signals a de-escalation of the tariff war that intensified just weeks ago.
Under the agreement:
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The U.S. will suspend 24% of its additional tariffs on Chinese goods imposed via Executive Orders 14257, 14259, and 14266, while retaining a 10% duty on affected products.
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China will mirror this action, suspending the same proportion of duties imposed under its own announcements and removing retaliatory tariffs and non-tariff measures implemented since April 2.
The agreement also includes the removal of non-tariff countermeasures taken by China against the U.S., signaling a broader effort to return to pre-escalation norms.
The two sides will now establish a mechanism for continued economic and trade talks, led by He Lifeng, Vice Premier of the State Council of China, and Scott Bessent, U.S. Secretary of the Treasury, along with Jamieson Greer, United States Trade Representative. Future negotiations may take place in China, the United States, or a neutral third country.
The breakthrough comes at a time when both nations are facing internal economic pressures and growing concerns from global markets over trade volatility. The U.S. had announced sweeping tariffs in early April as part of a broader effort to recalibrate its trade relationship with China, prompting swift retaliation from Beijing.
While the 90-day window is being seen as a temporary reprieve, both governments stressed the importance of sustained dialogue, mutual respect, and economic cooperation.
The development is expected to calm investor nerves and restore some degree of predictability to global supply chains, especially in sectors like electronics, machinery, and pharmaceuticals — all of which had been hit hard by the recent spike in tariffs.
What’s next:
If no major disagreements emerge, trade officials from both sides are expected to meet in person by mid-June to begin a broader framework for long-term trade cooperation.
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