The United States and China announced a bilateral agreement to ease trade tensions by suspending a substantial portion of recently imposed tariffs, marking a step toward stabilising relations between the world’s two largest economies.
In a joint statement, the two governments acknowledged the global importance of their economic ties and committed to a “sustainable, long-term, and mutually beneficial” trade relationship. The deal followed a series of discussions aimed at addressing long-standing concerns on both sides.
As part of the agreement, a 90-day pause on elevated trade tariffs will begin on Wednesday, 14th May 2025. The United States will reduce tariffs on Chinese imports to 30%, down from the current 145%. In return, China will lower its duties on American goods to 10%, a significant drop from the existing 125%.
Both sides also agreed to establish a formal mechanism to continue dialogue on trade and economic issues. Vice Premier He Lifeng would represent China, while the US would be represented by Treasury Secretary Scott Bessent and United States Trade Representative Jamieson Greer. Future talks may alternate between China, the US, or a mutually agreed third country, with provision for working-level consultations as needed.
The agreement signalled a temporary de-escalation in trade friction and indicated a willingness from both sides to pursue more stable economic relations.
