US and China Reach Temporary Trade Truce: Tariffs Reduced for 90 Days

US and China Agree to 90-Day Tariff Truce The United States and China have reached a temporary agreement to ease high tariffs, marking a significant development in their ongoing trade dispute. The agreement, announced on May 12th, 2025, will see the US reduce its 145% tariff on certain Chinese goods to 30%, while China will lower its 125% tariff on US goods to 10%. This temporary reduction will be in effect for 90 days. U.S. Trade Representative Jamieson Greer stated, "The United States will reduce its 145% tariff on Chinese goods to 30%." China's Commerce Ministry added in a statement that this initiative aligns with the expectations of producers and consumers in both countries and serves the common interests of the world. Despite the temporary reprieve, businesses and investors will still face higher tariffs than those in place before the Trump administration's tariff increases. The 90-day pause provides an opportunity for both nations to continue negotiations and work towards a long-term trade agreement. The recent spike in tariffs, described by U.S. Treasury Secretary Scott Bessent as "the equivalent of an embargo," highlights the urgency for a resolution. The hope is that this temporary agreement will pave the way for a more stable and mutually beneficial trade relationship between the two economic giants.