BREAKTHROUGH: US and China Reach Deal to Slash Tariffs

Stock futures absolutely soaring. The US and China have reached a trade to slash tariffs by 115%.

CHINA-US agree to lower tariffs on each other for 90 days.

Stock futures absolutely soaring. https://t.co/rkrZvlm7Ce pic.twitter.com/byvESef6ow

— Joe Weisenthal (@TheStalwart) May 12, 2025

US and China reach deal to slash tariffs, officials say

By Reuters, May 12, 2025:

The United States and China said on Monday they have agreed to a deal to slash reciprocal tariffs for now as the world’s two biggest economies seek to end a trade war that has disrupted the global outlook and set financial markets on edge.

Speaking after talks with Chinese officials in Geneva, US Treasury Secretary Scott Bessent told reporters the two sides had agreed on a 90 day pause on measures and that tariffs would come down by over 100 percentage points to 10%.
US Treasury Secretary Scott Bessent (R) and US Trade Representative Jamieson Greer hold a news conference in Geneve on May 12, 2024, to give details of “substantial progress” following a two-day closed-door meeting between US and China top officials aimed at ending a devastating tariff war. 3
US Treasury Secretary Scott Bessent (R) and US Trade Representative Jamieson Greer hold a news conference in Geneva on May 12, 2024, to give details of “substantial progress” following a two-day closed-door meeting between US and China’s top officials aimed at ending a devastating tariff war. AFP via Getty Images

“Both countries represented their national interest very well,” Bessent said. “We both have an interest in balanced trade, the US will continue moving towards that.”

Bessent was speaking alongside US Trade Representative Jamieson Greer after the weekend talks in which both sides had hailed progress on narrowing differences.
The Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since US President Donald Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.

Since taking office in January, Trump has hiked the tariffs paid by US importers for goods from China to 145%, in addition to those he imposed on many Chinese goods during his first term and the duties levied by the Biden administration.

China hit back by putting export curbs on some rare earth elements, vital for US manufacturers of weapons and electronic consumer goods, and raising tariffs on US goods to 125%.