US-China Agree to Suspend 115% Tariffs for 90 Days
The United States and China have taken a major step toward easing trade tensions by agreeing to a 90-day suspension on new import tariffs. Both nations have committed to significantly reducing existing tariffs as part of the temporary relief plan.
On May 12, U.S. Treasury Secretary Scott Bessent announced that a mutual agreement had been reached for a 90-day tariff pause. He noted that current tariffs would be substantially reduced, providing room for improved bilateral trade relations.
Under this agreement, the U.S. will lower tariffs on Chinese imports from 145% to 30%, while China will reduce tariffs on American products from 125% to 10%. Bessent described it as “a 90-day freeze,” emphasizing that both sides had agreed to a meaningful tariff cut and respectful discussions.
Executive Measures
According to a joint statement, the U.S. will take the following actions by May 14, 2025:
- Suspend 24% out of the 34% additional tariff imposed under Executive Order 14257 (April 2, 2025) on products imported from China, including Hong Kong and Macau, making only 10% effective for 90 days.
- Completely remove additional tariffs under Executive Orders 14259 (April 8, 2025) and 14266 (April 9, 2025).
China's Response
China has reciprocated with similar moves. An official statement noted that under Tariff Commission Notification No. 4 (2025), China will cut additional tariffs on American goods by 24 percentage points, with only 10% remaining for the 90-day period.
Additionally, it has revoked all extra tariffs imposed under Notifications No. 5 and 6 and has announced the suspension or removal of non-tariff countermeasures that were introduced after April 2, 2025.
These measures reflect a noticeable easing in trade tensions between the world’s two largest economies and signal a potential return to more stable trade negotiations in the near future.