Mon May 12 07:20:00 UTC 2025: ## US and China Slash Tariffs in Major Trade Breakthrough

**Geneva, Switzerland** – The US and China have significantly reduced tariffs on each other’s goods following high-level trade talks in Geneva, marking a major de-escalation in the long-running trade war. A joint statement released Monday announced that the US has cancelled 91% of its additional tariffs on Chinese goods, with China reciprocating by removing 91% of its retaliatory tariffs. Furthermore, both countries agreed to suspend 24% of their respective “equivalent” tariffs.

The Chinese Commerce Ministry hailed the talks as achieving “substantial progress,” stating the move aligns with the interests of both countries’ producers and consumers, as well as global interests. A spokesperson urged the US to continue working with China to completely rectify its unilateral tariff increases and foster greater cooperation.

The agreement sees the US reduce tariffs on most Chinese imports from 145% to 30%, and China lower its tariffs from 125% to 10%. These reductions will take effect by May 14th.

Zhang Zhiwei, chief economist at Shanghai-based PBOC Investment Management, described the outcome as better than expected, calling it “very positive news for both economies and the global economy,” significantly alleviating investor concerns about global supply chains. However, he cautioned that the tariff cuts are temporary, lasting only three months, and represent “just the start of a long process.”

The two-day talks, the first between the two countries since the trade war began, were held between US Treasury Secretary Janet Yellen and Trade Representative Katherine Tai, and Chinese Vice Premier He Lifeng. The agreement offers a potential pathway towards a longer-term trade resolution, though further negotiations are expected.

Read More