Roving Periscope: Blinking together, the US and China slash tariffs for 90 days
Virendra Pandit
New Delhi: After a lot of fire and brimstone they spewed against each other for weeks, the US and China blinked together at Geneva, Switzerland, on Sunday and agreed to slash reciprocal tariffs by 115 percent for 90 days, soaring investors’ sentiments around the world markets for the time being.
During this three-month window, Washington will lower its tariffs on Chinese goods from 145 percent to 30 percent, while Beijing will bring down tariffs on American imports from 125 percent to 10 percent, the media reported on Monday.
While China appeared firm in its resolve, Donald Trump, who has earned the dubious distinction of becoming the ‘most unpopular president ever” within four months of his second inauguration, wanted to earn some brownie points somewhere to restore his supporters’ confidence. His efforts in Gaza and Ukraine have brought little respite to him, although he managed to stave off a full-fledged war between India and Pakistan on Saturday last.
In is in this context that he quickly agreed to blink at China which was only too eager to respond likewise.
As a possible prelude to their ongoing tariff-and-trade talks leading to some agreement in the weeks ahead, the two countries jointly declared a 90-day pause on a part of their current tariff-rates.
US Treasury Secretary Scott Bessent told the reporters that the two countries had agreed not only to a temporary suspension but also to a notable reduction in current tariff levels. The tariff cuts will be reciprocal, with each side reducing rates by 115 percent.
“We have reached an agreement on a 90-day pause and substantially moved down the tariff levels.”
He characterised the talks with Chinese officials as productive and emphasised that “both sides showed great respect.”
US Trade Representative Jamieson Greer said, “It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large.”
One of the Trump administration’s main goals is to reduce the trade gap with China, which reached a record USD 263 billion in 2024. “We’re confident that the deal we struck with our Chinese partners will help us to resolve, work towards resolving that national emergency,” he said.
In a joint statement, the US and China said: “The parties commit to take the following actions by May 14, 2025: The United States will (1) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order…”
It also said: “China will (1) modify accordingly the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10 per cent on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025; and (2) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.”
After assuming office on January 20, President Trump increased tariffs on US imports from China to 145 percent, building on the levies he had introduced during his previous term and those later implemented by the Biden administration.
Reacting to it, China also 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 percent.
This escalating trade conflict effectively froze close to USD 600 billion in bilateral trade, disrupted global supply chains, raised concerns over stagflation, and led to some job losses.
