The United States and China have agreed to a 90-day suspension of a significant portion of tariffs imposed on each other's goods, following two days of trade talks in Geneva.  

Under the terms of the joint statement, the US will reduce the overall tariff rate on Chinese goods from 145% to 30% for a 90-day period. In parallel, China will implement a reciprocal reduction, reducing its rates on US goods from 125% to 10%. In addition, China will suspend non-tariff countermeasures that had been in place since April 2025.

The talks were attended by US Treasury Secretary Scott Bessent, US Trade Representative Jamieson Greer, and China's Vice Premier He Lifeng, along with other senior officials. The negotiations took place at the residence of Switzerland’s UN ambassador, with the Swiss government acting as the host.

Both parties have agreed to complete these tariff modifications by May 14.

Speaking in Geneva, Secretary Bessent said the high tariffs had functioned as a de facto embargo and that both countries recognised the need to avoid decoupling. He stated that the US sought a more balanced trading relationship and that both sides were committed to continuing dialogue.

“What this new deal does achieve is reopening the $660 billion US–China trade pipeline and easing pressure on global supply chains,” said Ajay Srivastava, founder of Global Trade Research Initiative. ”It lifts some of the most punishing tariffs and allows trade to flow more freely again.”

The agreement follows a sequence of tariff actions initiated earlier this year. In February and March, the US imposed 20% levies on Chinese goods in response to the fentanyl crisis. These specific measures remain in place and are not affected by the latest agreement.

While the joint statement does not contain details of further tariff changes beyond the 90-day window, it establishes a framework for ongoing engagement. 

Srivastava also said that there’s no plan to fix the core trade imbalance, and no clear path to rebuild US manufacturing.

The announcement had an immediate impact on financial markets.