USA and China agree to “Cease-Fire,” Reduce Their Punitive Tariffs

As a result of talks in Geneva, Switzerland, the White House has announced that the US and China have agreed to take joint measures to deescalate the trade war between the two nations.

Most significantly, the US has agreed to reduce its 125% IEEPA tariff on products from China down to 10% for a period of 90 days, during which the two countries will continue their talks. This will make the total additional tariffs against Chinese imports 30%, and will not affect existing measures addressing the flow of Fentanyl into the united states, nor existing measures under Section 232 of the trade expansion act of 1962 (ie, tariffs on steel, aluminum, vehicles, and auto parts).

China has agreed to act in parallel by reducing their US export tariffs down to 10% by likewise removing their retaliatory and counter-escalation tariffs.

The US and China have jointly committed to enacting these measures by Wednesday, May 14, 2025. From there, both parties “will establish a mechanism to continue discussions about economic and trade relations.”

Allyn International’s service suite includes consultation on current and developing issues in the US trade community. Reach Allyn here for a consultation or, contact us sales@allynintl.com or 239-489-9900.

Contributor: Andrew Dosher

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