News Brief
US, China Pause Trade War For 90 Days To Pursue Negotiated Settlement, Tariffs Lowered To 10 And 30 Per Cents
US-China
The United States and China have agreed to suspend their escalating tariff war for an initial period of 90 days. The agreement, announced via a joint statement on Monday (12 May), marks a potential turning point in bilateral economic relations between the world’s two largest economies.
During this period, both countries will scale back some of their previously announced measures. China will impose a 10 per cent tariff on American goods, while the US will tax Chinese imports at about 30 per cent.
The two sides acknowledged the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship and expressed confidence that continued dialogue could help address outstanding concerns.
"These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues," the statement read.
China will be represented in the talks by He Lifeng, Vice Premier of the State Council, while the US delegation will include Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
US President Donald Trump had earlier imposed steep reciprocal tariffs on multiple countries with whom the US had trade deficits, including China.
While these measures sparked global concern, Trump later paused them for 90 days starting 9 April, imposing a baseline 10 per cent tariff on all nations during the interim.
For China, Trump had previously suggested tariffs could reach as high as 245 per cent, while Chinese retaliatory tariffs stood at 125 per cent.
Since beginning his second term, Trump has reaffirmed his hardline approach to tariff reciprocity, pledging that the US will mirror tariffs imposed by other nations to ensure fair trade.
