The United States and China unveiled a landmark agreement to roll back tariffs on billions of dollars worth of goods, signaling a thaw in bilateral trade tensions following high-level talks in Geneva. The deal, outlined in a joint statement released Monday, temporarily suspends a portion of recently imposed duties and establishes a framework for resolving ongoing disputes.
Under the agreement, the U.S. will pause 24 percentage points of additional tariffs on select Chinese imports—including those from Hong Kong and Macao Special Administrative Regions—for 90 days starting April 2, while maintaining a 10% baseline rate. Measures announced in early April imposing tariffs up to 125% will be fully revoked. China reciprocated by adjusting corresponding tariffs on U.S. goods through similar suspensions and removals of recent trade countermeasures.
The breakthrough follows weeks of escalating tensions after U.S. Executive Orders 14259 raised tariffs to 84% on April 8, later increased to 125% the next day. The ad valorem duties—taxes calculated as a percentage of product value—had threatened to destabilize global supply chains and financial markets.
Both nations agreed to establish a bilateral working group to address long-term trade concerns, with meetings potentially held in third countries. All adjustments must be implemented by May 14, according to the terms.
Analysts suggest the temporary truce provides breathing room for businesses and investors navigating cross-Pacific trade flows. The moves come as global markets seek stability amid rising geopolitical uncertainties and economic headwinds in key Asian markets.
