In a major breakthrough in the US-China relationship, both sides agreed to slash reciprocal tariffs for 90 days. The move could bring more relief to consumers and companies impacted by the hefty tariffs.
As reported by CNBC, tariffs between the United States and China will be cut down to 10 percent from the current 125 percent. The 10 percent is a baseline tariff that the US has imposed on all countries around the world. Of course, the 20 percent tariff on Chinese goods over China's role in the fentanyl crisis in the US remains intact, which means the total tariffs on China's imports to the US would be 30 percent.
Last week, it was reported that US and Chinese officials would meet in Switzerland to discuss trade deals. The negotiation was held over the weekend in Geneva, and both sides finally reached an agreement to ease the ongoing trade war.
"We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%," the US Treasury Secretary Scott Bessent said in a news conference. Bessent added, "We want more balanced trade, and I think both sides are committed to achieving that. Neither side wants a decoupling."
Of course, Trump has already revealed his intention to lower tariffs on China. In an interview with Kristen Welker on NBC's Meet the Press, Trump said tariffs are so high that the US and China have ceased trading. He also said tariffs on China would be lower, but he noted that tariffs wouldn’t be zero.
A 90-day pause on tariffs is good news for tech firms that rely on Chinese manufacturers to produce their products. Most US firms, like Apple and Google, have begun moving production to India, Brazil, and Vietnam to evade tariffs.
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