The United States and China have reached a significant agreement to reduce tariffs in a major step towards easing trade tensions. This announcement came in a joint statement released on Monday morning, marking a hopeful turn in negotiations that have been strained for months.
Starting May 14, China will cut its tariffs on U.S. imports from a staggering 125 percent down to 10 percent. In return, the U.S. will lower its tariffs on Chinese goods from 145 percent to 30 percent. However, President Trump’s additional “fentanyl tariff” of 20 percent will stay in place, along with a general 10 percent tariff on imports.
This tariff reduction is temporary and will last for just 90 days. While both nations plan to continue their discussions during this period, the specifics of a long-term agreement remain uncertain. Secretary of the Treasury Scott Bessent shared with reporters that both sides are eager for a more balanced trade relationship and are committed to making progress.
The trade dispute began in February when President Trump first introduced new tariffs on Chinese imports, leading to a cycle of retaliatory measures from both countries. The latest development signals a willingness from both sides to negotiate and find common ground, which could pave the way for a more stable trade environment in the future.
