U.S., China to slash tariffs for 90 days

The United States and China have agreed to significantly reduce high tariffs imposed on each other’s imports, following two days of high-level trade negotiations held in Geneva, Switzerland, on May 10 and 11.

On May 12 (local time), U.S. Treasury Secretary Scott Bessent, the chief U.S. negotiator, announced at a press briefing that both countries had agreed to reduce their reciprocal tariffs by 115 percentage points over the next 90 days. As a result, U.S. tariffs on Chinese goods will be lowered from 145 percent to 30 percent, and China’s tariffs on U.S. goods will drop from 125 percent to 10 percent.

In a joint statement, both sides said, “We will address concerns in the economic and trade relationship and establish a mechanism for continued dialogue.” Secretary Bessent added that neither side wants decoupling or excessive tariffs, and both are seeking a more balanced trade relationship, signaling that negotiations to resolve trade tensions will continue. However, some observers remain cautious, noting that the two nations have struggled to prevent further conflicts despite forming numerous dialogue frameworks in the past.

This round of negotiations appears to mark a potential turning point in easing the standoff that began with a tit-for-tat tariff escalation under the second Trump administration earlier this year. Still, the two countries remain far apart in their goals. The U.S. is pushing for a broad realignment of the bilateral trade relationship, including reducing its trade deficit with China. Meanwhile, Beijing contends that Washington’s demands are excessive. Chinese Vice Premier He Lifeng said that while “important progress” was made in the talks, China will “firmly respond” if the U.S. continues actions that undermine its interests.


Jin-Woo Shin niceshin@donga.com