In a significant move to ease trade tensions, China has agreed to reduce tariffs on U.S. imports from 125% to 10% for a 90-day period. This decision follows recent negotiations between the two nations aimed at de-escalating their ongoing trade conflict.
Background
The U.S.-China trade war intensified in April 2025 when the U.S. increased tariffs on Chinese goods to 145%, prompting China to retaliate with 125% tariffs on U.S. products. These measures disrupted global supply chains and heightened economic uncertainties
Recent Developments
- Tariff Reductions: Both countries have agreed to lower tariffs to 10% for 90 days. The U.S. will maintain a 10% base tariff, with an additional 20% levy on specific items like fentanyl-related products.
- Exemptions: China has exempted certain U.S. imports, including semiconductors and medical equipment, from tariffs, indicating a willingness to ease trade barriers. Reuters
Implications
These temporary measures aim to stabilize economic relations and provide a window for further negotiations. However, the underlying issues remain unresolved, and the outcome of ongoing talks will determine the long-term trajectory of U.S.-China trade relations.
