US, China Slash Tariffs from 145% to 30% in Major Trade Breakthrough
The United States and China have agreed to significantly reduce tariffs on each other’s goods, marking a major de-escalation in their ongoing trade tensions.
Following talks in Geneva, both countries issued a joint statement on Monday committing to suspend 24 percentage points of recently imposed tariffs for an initial 90-day period, while retaining a base 10% ad valorem rate on affected goods.
This move effectively lowers the United States’ total tariff burden on most Chinese imports from 145% to 30%, and China’s levies on U.S. goods from 125% to 10%, according to details provided by officials during the announcement.
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“The United States will… suspend 24 percentage points of [the] rate for an initial period of 90 days,” the statement read, adding that the U.S. would also remove additional tariffs imposed under Executive Orders 14259 and 14266.
In parallel, “China will… suspend 24 percentage points of that rate… and remove the modified additional ad valorem rates of duty” imposed earlier this year.
China further committed to “adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.”
Both sides underscored the importance of their “mutually beneficial economic and trade relationship” and pledged to continue discussions under a new mechanism led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer.
The joint statement emphasized that both nations were “moving forward in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”
The first round of follow-up talks is expected to begin after May 14, when the tariff cuts officially take effect.
