In a significant move to ease trade tensions, the United States and China have agreed to reduce tariffs on each other’s goods for a 90-day period. Effective immediately, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce its tariffs on U.S. goods from 125% to 10%.
Background
The trade conflict between the U.S. and China escalated in early 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 for 90 days. The U.S. will reduce tariffs on Chinese imports from 145% to 30%, and China will lower tariffs on U.S. goods from 125% to 10%.
- Exemptions: Certain U.S. tariffs related to fentanyl and other specific measures will remain in effect. WSJ
Implications
These temporary measures aim to stabilize economic relations and provide a window for further negotiations. However, underlying issues remain unresolved, and the outcome of ongoing talks will determine the long-term trajectory of U.S.-China trade relations.
