In a significant step toward stabilizing global economic ties, China and the United States announced reciprocal tariff reductions and a new dialogue framework following high-level talks in Geneva. The agreement, outlined in a joint statement released Monday, signals cautious optimism for thawing economic relations between the two powers.
Under the arrangement, both sides will suspend 24 percentage points of previously imposed additional tariffs on select goods while retaining 10% duties. The 90-day suspension window begins May 14, 2025, with the U.S. modifying tariffs enacted through three 2025 executive orders and China adjusting measures implemented via State Council announcements. Beijing also pledged to suspend non-tariff countermeasures introduced since April 2025.
The agreement establishes a continuing dialogue mechanism between Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. Discussions may alternate between both nations or neutral third-party locations, supplemented by working-level consultations.
Experts see the pact as addressing immediate trade friction while creating pathways to resolve deeper structural disagreements. The phased approach allows both economies to assess implementation before committing to further concessions, potentially benefiting global supply chains and international markets.
The development follows months of escalating trade measures tied to disputes over technology transfers, market access, and national security concerns. While stopping short of a comprehensive resolution, the Geneva accord marks the first mutual tariff rollback since 2023.
