China to lower tariffs on U.S. imports to 10% from 125% for 90 days
By Aditya Bhagchandani Published on May 12, 2025, 12:35 IST
In a major de-escalation move following weeks of trade tension, China has agreed to reduce tariffs on U.S. imports to 10% from as high as 125% for a period of 90 days, as part of a mutual understanding reached during the recent U.S.-China economic and trade meeting in Geneva.
The tariff rollback, which applies to duties imposed under Announcement No. 4 of 2025 by the Customs Tariff Commission of the State Council, is a direct response to similar tariff relief measures announced by the United States. Beijing has also agreed to eliminate additional ad valorem duties imposed under Announcements No. 5 and 6 of 2025, and suspend all non-tariff countermeasures taken against U.S. goods since April 2, 2025.
This temporary reduction will restore most affected goods to a 10% baseline duty, dramatically easing the burden on sectors such as agriculture, semiconductors, and automobiles that had seen tariffs spike above 100% during the height of the retaliatory measures.
The move comes just days after the U.S. government announced it would suspend 24 percentage points of its own retaliatory tariffs on Chinese goods, while maintaining a 10% duty on the affected products.
Chinese Vice Premier He Lifeng will lead future discussions with U.S. counterparts Scott Bessent (Treasury Secretary) and Jamieson Greer (U.S. Trade Representative), with the two sides agreeing to resume structured talks. The meetings may rotate between the U.S., China, or a neutral venue.
The tariff truce is expected to provide relief to exporters on both sides and give global markets a chance to stabilize. The agreement is viewed as a confidence-building measure, aimed at creating room for more durable negotiations ahead of the next World Trade Organization summit.
While this 90-day reprieve is temporary, both countries have expressed openness to longer-term engagement — provided progress continues in resolving structural and trade balance concerns.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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