The US and China agree to mutually reduce tariffs for 90 days

The United States and China have agreed to mutually reduce additional tariffs for an initial 90-day period.

According to the joint statement, by May 14 this year, the United States will temporarily reduce its tariffs on Chinese goods from 145% to 30%, while China will reduce duties on American imports from 125% to 10%. China will also take all necessary administrative measures to suspend or cancel non-tariff countermeasures taken against the United States since April 2 this year.

As noted, the parties will create a mechanism to continue discussing economic and trade relations. Vice Premier of the State Council He Lifeng will represent the Chinese side in these discussions, while the US side will be represented by Treasury Secretary Scott Bessent and US Trade Representative Jamison Greer.

“These discussions can be held alternately in China and the United States or in a third country as agreed by the parties. If necessary, both sides may hold working-level consultations on relevant economic and trade issues,” the statement said.

Scott Bessent noted that the announced tariff cuts do not apply to sectoral duties imposed on all US trading partners, and the tariffs applied to China during the first Trump administration will remain in effect.

On May 8, the United States and the United Kingdom announced a limited bilateral trade agreement. It leaves in place the overall 10 percent US tariffs on British exports. However, it was agreed to reduce the 25 percent tariff on British steel to zero. The duty on car exports to the UK will be reduced from 27.5% to 10% (the reduced rate will apply to 100 thousand cars).

As GMK Center reported earlier, on April 9, US President Donald Trump announced a 90-day pause on all “reciprocal” duties for trading partners, except for China. He explained that he made the decision after more than 75 countries had requested negotiations and failed to take any reciprocal measures.