Asger Risom
The deal offers a 90-day reprieve in the escalating trade war between the world’s two largest economies
As tensions have mounted for weeks, the United States and China have reached a rare moment of compromise. Starting May 14, both countries will implement significant, though temporary, reductions to the steep tariffs that have defined their latest trade standoff.
The agreement was announced after high-level talks in Geneva and marks the most meaningful de-escalation since President Donald Trump reignited the trade dispute a few weeks ago.
Details of the Tariff Cuts
According to the joint statement, China will slash tariffs on U.S. goods from 125% down to 10% for a period of 90 days. In return, the U.S. will lower its tariffs on Chinese imports from 145% to 30% for the same period.
As reported by 20Minutos, the move was accompanied by the creation of a permanent consultation mechanism aimed at preventing future crises.
This structural addition represents what negotiators called “the most tangible signal of détente to date” between the two superpowers.
He Lifeng, vice premier of China’s State Council, led the Chinese delegation. The U.S. side was represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.
Focus on Broader Issues
In an unexpected development, the talks also addressed America’s worsening fentanyl crisis.
Greer noted that the negotiations included the first formal U.S. request for Beijing to clamp down on production and illegal exports of chemicals used to manufacture the synthetic opioid.
“There was a surprising degree of engagement from China on the fentanyl issue. For the first time, they acknowledged the scope of the crisis in the U.S.,” Greer stated.
Bessent described the talks as constructive and cordial, emphasizing that the newly agreed consultation mechanism is critical to preventing further tariff escalation. “This dialogue has allowed us to begin repairing severely damaged relations,” he said.
The agreement offers only a temporary pause in hostilities, but analysts see it as a promising start. Both sides appear committed to using this window to negotiate longer-term solutions to their deep trade differences.
