U.S. and China Agree to Lower Tariffs

New York, NY, May 12, 2025-The U.S. and China said Monday they have agreed to lower tariffs on each other's goods while further trade negotiations continue, reports the Wall Street Journal.

Tariffs will now be 30% on imports from China to the U.S., a 20% tariff related for fentanyl plus 10% as a regular tariff. The ‘reciprocal’ tariff on Chinese goods was 125%.

“Likewise, China said it would lower its tariff on U.S. goods to 10% from 125%.

They have agreed to these terms for the next 90 days.

“U.S. tariffs related to fentanyl and other measures will remain.

“The two countries said they ‘will establish a mechanism to continue discussions about economic and trade relations.’

“The announcement concludes two days of marathon talks in Switzerland aimed at easing tensions over trade between the world’s two biggest economies.

“Since starting his second term, Trump has slapped 145% tariffs on Chinese goods while Beijing has hit back with 125% duties on imports from the U.S. That has led bilateral trade to nearly dry up, heightening inflationary pressure in the U.S. and threatening the export engine powering Chinese growth.”