On Monday, the US and China agreed to pause reciprocal and other tariffs on each other for 90 days and decrease remaining tariffs by 115%. The US’s tariff rate on imports from China will now drop to 30%. Chinese imports to the US will also fall to 10%.
Secretary of the US Treasury Scott Bessent spoke of the attitude between both countries while negotiating the deal:
“It was always respectful. We had the two largest economies in the world. We were firm — and we moved forward … We came with a list of problems that we were trying to solve and I think we did a good job on that,” Bessent said.
A White House fact sheet states that the deal will “stem” the flow of fentanyl into the US by taking “aggressive actions… and other precursors from China to illicit drug producers in North America.” Notably, 20% of the US’s current 30% tariff on China is being applied for this purpose
“This is a priority for President Trump and, indeed, the whole administration,” Bessent said regarding fentanyl. “Hundreds of thousands of Americans die every year and I think that we saw here in Geneva that the Chinese are now serious about assisting the U.S. in stopping the flow of precursor drugs.”
The US and China will apply these tariff changes by May 14, 2025. When the changes go into effect, both countries will work toward addressing the US’s trade deficit of $295.4 billion with China, the largest deficit it has with any country.
The sentiment from the US concerning the deal appears optimistic for the future and the commercial relationship between both countries. President Trump posted on Truth Social that “a total reset” was negotiated “in a friendly, but constructive, manner.”
According to The Associated Press, the Chinese Ministry of Commerce echoed President Trump’s sentiments regarding the deal:
“This initiative aligns with the expectations of producers and consumers in both countries and serves the interests of both nations as well as the common interests of the world,” the ministry stated.
