US and China Reach 90-Day Trade Truce, Signaling Potential De-escalation

Geneva Trade Deal: US and China Agree to Temporary Tariff Reduction On May 12, 2025, a joint statement released by the White House announced a significant development in US-China trade relations. Both countries have agreed to a temporary reduction in tariffs on each other's goods. The agreement, reached in Geneva, involves a 90-day pause on certain tariffs, marking a potential de-escalation of trade tensions. The US will temporarily lower its overall tariffs on Chinese goods from a reported 145% to 30%. Simultaneously, China will reduce its levies on American imports from 125% to 10%. This represents a substantial concession from both sides. While the deal is temporary, it signals a willingness to engage in further negotiations and find common ground. "This is a significant step toward easing trade tensions and fostering a more stable economic relationship between the US and China," stated an unnamed White House official. The official emphasized that the 90-day period will allow both sides to engage in further discussions and explore more permanent solutions. The agreement also includes provisions for the suspension of additional tariffs imposed in early April 2025. The 90-day period will allow both sides to assess the effects of the tariff reductions and potentially pave the way for a more comprehensive and long-term trade agreement. While challenges remain, this temporary deal offers a glimmer of hope for improved bilateral relations.