Geneva – In a significant move to ease trade tensions, the United States and China announced a series of tariff adjustments on Monday following a two – day high – level economic and trade meeting in Geneva. The joint statement released by both governments marks a crucial step towards stabilizing their bilateral economic and trade relationship, which has been a major source of uncertainty for the global economy.
Key Tariff Adjustments
US Tariff Changes
The US government has committed to several key actions. It will remove 91% of the additional tariffs imposed on Chinese goods under Executive Order 14259 of April 8, 2025 and Executive Order 14266 of April 9, 2025. Additionally, for the 34% reciprocal tariffs imposed under Executive Order 14257 of April 2, 2025, the US will suspend 24 percentage points of that rate for an initial period of 90 days, while maintaining the remaining 10% ad valorem rate. As a result, the overall tariff rate on Chinese imports to the US will drop from 145% to 30% for the next 90 days.
China’s Response
In response, China will eliminate 91% of its counter – tariffs on US goods. Specifically, for the 34% of counter – tariffs corresponding to the US measures, China will suspend 24% for 90 days and retain the remaining 10%. China will also take all necessary administrative measures to suspend or remove the non – tariff countermeasures taken against the US since April 2, 2025. After these adjustments, the tariff rate on US goods imported into China will be reduced from 125% to 10%.
Significance of the Agreement
Both countries recognize the importance of their bilateral economic and trade relationship to their domestic economies and the global economic stability. The tariff adjustments are expected to provide relief to businesses on both sides, which have been grappling with increased costs and disrupted supply chains due to the protracted trade disputes. The move is also likely to boost market confidence and stimulate trade activities between the two economic powerhouses.
Future Discussions
The joint statement also reveals that the two sides will establish a mechanism to continue discussions about economic and trade relations. The Chinese side will be represented by Vice Premier He Lifeng, while the US side will be represented by Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer. These discussions can be held in China, the US, or a third country agreed upon by both parties, and working – level consultations on relevant economic and trade issues can be carried out as needed.
The Geneva talks and the resulting tariff adjustments signal a positive shift in the US – China economic relationship. However, challenges remain, and the implementation of these measures and future negotiations will be closely watched by the international community.
Regarding Chinese goods in the United States: The United States has cancelled a total of 91% of the tariffs imposed on Chinese goods in Executive Order 14259 issued on April 8, 2025, and Executive Order 14266 issued on April 9, 2025. The 34% “reciprocal tariffs” imposed on Chinese goods in Executive Order 14257 issued on April 2, 2025 have been modified. Specifically, 24% of these tariffs will be suspended for 90 days, and the remaining 10% of the tariffs will be retained. The comprehensive tariff rate of the United States on Chinese goods has been reduced from 145% to 10% (only the basic Most Favored Nation (MFN) tariff rate plus an additional 10% tariff is retained). Tariffs for specific industries (such as semiconductors, steel, etc.) may still be retained, and the calculation needs to incorporate the basic MFN tariff rate (0%-10%) and additional taxes (such as a 20% tariff on fentanyl). The tariff policy for packages worth less than $800 has not been clearly adjusted, and a high ad valorem tax may still be applicable.
Regarding US goods in China: China has cancelled a total of 91% of the counter-tariffs imposed on US goods. For the counter-measures of the 34% “reciprocal tariffs” against the United States, 24% of these tariffs will be suspended for 90 days, and the remaining 10% will be retained. China’s comprehensive tariff rate on US goods has been reduced from 125% to 10% (only the basic MFN tariff rate plus a 10% counter-tariff is retained).
Both sides have agreed to continue consultations within 90 days. If the negotiations are unsuccessful, the United States may restore the additional 24% tariffs, and China may also readjust the counter-tariff rate upwards. Therefore, this tariff adjustment means that both sides have suspended the mutual imposition of 24% tariffs, and retained 10% of the tariffs as a bargaining chip for the negotiations.