US and China Agree to Reduce Reciprocal Tariffs by 115% for 90 Days

In the midst of ongoing trade talks, the United States and China have agreed to a 90-day pause on a portion of their existing tariffs, according to a joint statement issued by both countries.

In a media briefing, US Treasury Secretary Scott Bessent stated that the two countries had agreed not only to a temporary suspension but also to a significant reduction in current tariff rates. According to Bessent, tariff cuts will be reciprocal, with each side lowering rates by 115%.

During this 90-day period, the United States will reduce its tariffs on Chinese goods from 145% to 30%. In a similar move, China will reduce tariffs on American imports from 125% to 10%.

"We have reached an agreement on a 90-day pause and substantially moved down the tariff levels." He described the talks with Chinese officials as productive, emphasizing that "both sides showed great respect," Bessent said.

US Trade Representative hints at a quick trade agreement

US Trade Representative Jamieson Greer stated, "It's important to understand how quickly we were able to reach an agreement, which suggests that perhaps the differences were not as significant as previously thought."

Greer stated that one of the Trump administration's primary goals is to reduce the trade deficit with China, which reached a record $263 billion the previous year."We're confident that the deal we struck with our Chinese partners will help us to resolve, work towards resolving that national emergency," said Mr. Putin.

The US and China issued a joint statement that read, "The parties commit to take the following actions by May 14, 2025: The United States will (i) modify the application of the additional ad valorem rate of duty on Chinese articles (including articles from the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while maintaining the remaining ad valorem rate of 10% on those articles in accordance with the terms of said Order."

The statement went on to say, "China will (i) modify the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percent points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10% on those articles, and removing the modified additional ad valorem rates; and (ii) take all necessary administrative actions to suspend or remove the non-tariff countermeasures imposed on the United States since April 2, 2025."