US and China Reach Temporary Trade Truce Reducing Tariffs by 24 Percentage Points in Landmark 90-Day Agreement
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US and China Reach Temporary Trade Truce Reducing Tariffs by 24 Percentage Points in Landmark 90-Day Agreement
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As of June 1, 2025, US tariffs on Chinese imports remain at a temporarily reduced rate following the significant trade agreement reached between the two economic powers last month. On May 12, the United States and China issued a joint statement announcing a mutual reduction in tariff rates for an initial 90-day period.
The US has suspended 24 percentage points of the additional tariffs imposed on April 2, 2025, while maintaining a baseline 10% tariff on Chinese goods. This move brought down the effective US tariff rate on Chinese imports from approximately 51% to about 30%, providing some relief to importers and consumers facing higher prices.
China reciprocated by suspending 24 percentage points of its retaliatory tariffs while maintaining a 10% additional rate on US goods. China also agreed to remove non-tariff countermeasures implemented against the US since April 2.
This temporary truce comes after President Trump's sweeping "Liberation Day" tariff initiative announced on April 2, which had raised duties on Chinese imports to 54%. The administration had imposed a universal 10% baseline tariff on all imports entering the United States, with China facing an additional 34% on top of previously existing 20% tariffs.
The current 90-day reduced tariff period is set to expire in mid-August, leaving businesses uncertain about future trade conditions. Trade experts are closely watching negotiations between the two countries to see if this temporary reduction will be extended or if tariffs will return to their previous higher levels.
Despite the temporary reduction, US tariffs on Chinese goods remain historically high at around 30%. Before the Trump administration's trade actions, average US tariffs on Chinese exports were significantly lower. The current rate represents a substantial trade barrier that continues to impact global supply chains and consumer prices.
Economic analysts note that these tariff reductions have helped ease some inflationary pressures, though the remaining tariffs still represent a significant tax on American consumers and businesses that import Chinese goods.
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