China and the United States have agreed to gradually reduce their respective tariffs, according to a joint statement released after talks in Geneva on Monday. Under the agreement, the US will temporarily suspend certain tariffs on Chinese goods, including those from Hong Kong and Macau. Specifically, 24% of the tariffs will be paused for 90 days, while the remaining 10% will remain in place. Additionally, tariffs imposed through two specific orders in April 2025 will be fully lifted.
In return, China will also reduce tariffs on US goods. Here too, 24% of the tariffs will be paused for 90 days, while the remaining 10% will remain in place. Furthermore, China plans to pause or abolish non-tariff countermeasures against the US that have been in effect since April 2025. Both countries agreed to establish a mechanism to further negotiate their trade relations, which could take place in China, the US, or a third country.
Both countries acknowledged the importance of their bilateral trade relations for the global economy and emphasized the need for sustainable, long-term and mutually beneficial cooperation. The talks represent a step towards resolving the ongoing trade dispute between the two economic powerhouses. The goal is to create a more stable and predictable trading environment for businesses and consumers on both sides. The gradual reduction of tariffs is expected to help ease tensions and foster a more constructive dialogue between China and the US in the future. This development is seen as a positive sign for the global economy, as it demonstrates a willingness to work together and find common ground in a complex and challenging trade landscape. Both sides are expected to continue monitoring the implementation of the agreement and adjust as necessary to ensure its success and sustainability. The hope is that this agreement will serve as a foundation for further cooperation and progress in the future.