President Donald Trump and China have reached an agreement to temporarily reduce tariffs, marking a significant step towards defusing the ongoing trade war between the two nations. The decision comes after successful negotiations over the weekend in Geneva, Switzerland, where both parties affirmed the importance of their bilateral economic relationship. Under the new agreement, the United States will remove additional tariffs imposed on China in April 2025 but will retain all duties imposed prior to that date.
This includes Section 301 tariffs, Section 232 tariffs, and tariffs related to the fentanyl national emergency. The U.S. will also suspend its 34% reciprocal tariff for 90 days, maintaining a 10% tariff during this period. In return, China will remove the retaliatory tariffs it announced since April 4, 2025, and will suspend or remove non-tariff countermeasures taken against the United States.
China will also suspend its initial 34% tariff on the U.S. for 90 days, retaining a 10% tariff during the pause.
U.S. and China ease trade tension
The agreement aims to address trade imbalances and provide lasting benefits to American workers, farmers, and businesses.
In 2024, the U.S. goods trade deficit with China was $295.4 billion, the largest with any trading partner. To facilitate continued discussions on trade and economics, both nations have agreed to establish a mechanism for ongoing talks. China will be represented by He Lifeng, Vice Premier of the State Council, while the United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
The United States and China have also committed to taking aggressive actions to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America. President Trump stated, “We’re not looking to hurt China,” and expressed his intention to speak with President Xi Jinping this week. However, he noted that a comprehensive deal would take time to finalize.
This historic agreement underscores President Trump’s commitment to protecting American interests and creating fair trade terms for the United States, marking a new course for future trade relations between the two economic powerhouses.
