US, China Sign Deal To Roll Back Tariffs For 90 Days

In a significant breakthrough, the US and China agreed on Monday to a 90-day rollback of tariffs, effective from May 14.

United States Treasury Secretary Scott Bessent made the announcement following bilateral trade talks.

Under the agreement, the US will lower tariffs on Chinese goods from 145% to 30%, while China will cut tariffs on US goods from 125% to 10%, both for a 90-day period.

“We have reached an agreement on a 90-day pause and to substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%,” Bessent said at a press conference.

US, China Ongoing Dialogue And Future Cooperation Planned

The two countries committed to establishing a mechanism for continued discussions on economic and trade relations after the 90-day period.

China’s Vice Premier He Lifeng will lead the discussions from the Chinese side, while US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will represent the United States.

The two sides may hold future talks alternately in China, the US, or in a third country by mutual agreement.

Working-level consultations on specific trade issues will also take place as required.

Fentanyl And Trade Deficit Also Addressed

Beyond tariffs, both nations held productive discussions on steps to combat the fentanyl crisis.

“We had a very robust and productive discussion on steps forward on fentanyl. We are in agreement that neither side wants to decouple,” Bessent added.

US Trade Representative Jamieson Greer emphasised that the differences between the two nations were ‘not as large as maybe thought’.

He also noted that the agreement would contribute to reducing the $1.2 trillion US global goods trade deficit.

First In-Person Talks Between US & China

This meeting marked the first face-to-face engagement between senior US and Chinese officials since President Donald Trump assumed office and escalated the global trade war through sharp tariff hikes under his ‘America First’ policy.

The deal is seen as a positive step towards stabilising US-China trade relations and reducing tensions that have impacted global markets.

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