US, China agree to bring down reciprocal tariffs by 115% for 90 days

Amid ongoing discussions regarding a trade agreement, the United States and China have jointly declared a 90-day pause on a portion of their existing tariffs, as outlined in a statement released by both countries.

By Connect Gujarat Desk 12 May 2025 in Business World

New Update

US, China agree to bring down reciprocal tariffs by 115% for 90 days

In a media address, US Treasury Secretary Scott Bessent said the two countries had agreed not only to a temporary suspension but also to a notable reduction in current tariff levels. According to Bessent, the tariff cuts will be reciprocal, with each side reducing rates by 115 per cent.

During this 90-day window, the US will lower its tariffs on Chinese goods from 145 percent to 30 per cent. In a similar move, China will bring down tariffs on American imports from 125 per cent to 10 per cent.

Since assuming office in January, Donald Trump has increased tariffs on US imports from China to 145 per cent, building on the levies he had introduced during his previous term and those later implemented by the Biden administration.

In response, China imposed restrictions on the export of certain rare earth minerals — crucial for American defence and consumer electronics industries — and raised tariffs on US products to 125 per cent.

This escalating trade conflict effectively froze close to $600 billion in bilateral trade, disrupted global supply chains, raised concerns over stagflation, and led to some job losses, sources reported.

#US #China #World news #Business news