US and China Agree to 90-Day Reduction in Tariffs

The United States and China have mutually agreed to a 90-day reduction in tariffs, marking a significant step towards de-escalating the trade war between the world’s two largest economies. The agreement, negotiated by US and Chinese officials in Geneva, will see the US reducing duties on Chinese imports from 145% to 30%, while China will lower tariffs on US goods from 125% to 10%. This new agreement does not affect the removal of the de minimis exception on May 2nd, which closed a tariff loophole that allowed companies like Temu and Shein to send goods under $800 into the US without additional duties. The 90-day pause is intended to provide both countries with time to negotiate a final trade deal.