U.S. and China Agree to Suspend Many Tariffs

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

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

“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.”