Tariff Reductions: The U.S. agreed to lower tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on U.S. goods from 125% to 10%
The details you provided align with the information I shared earlier, confirming the 90-day pause in the U.S.-China trade war, with reciprocal tariffs reduced by 115 percentage points. Specifically, U.S. tariffs on Chinese imports will drop from 145% to 30%, and Chinese tariffs on U.S. goods will fall from 125% to 10%, effective following the Geneva talks on May 10-11, 2025. The agreement, as noted by U.S. Treasury Secretary Scott Bessent, reflects a mutual desire to avoid economic decoupling and foster balanced trade, with both sides showing respect and openness during negotiations. China’s commerce ministry echoed this, emphasizing benefits for producers, consumers, and global trade.
Additional points from your input highlight:
- China’s non-tariff measures, like restricting critical mineral exports, were seen as disproportionate by the U.S., but these are not explicitly addressed in the tariff reduction deal.
- The U.S. retains a 20% tariff tied to China’s role in the fentanyl crisis, which explains why U.S. tariffs remain higher (30%) than China’s (10%) post-reduction.
- Positive market responses include a stronger Chinese yuan, a 3% rise in Hong Kong’s Hang Seng Index, and significant gains in European markets (e.g., Germany’s Dax up nearly 1%, France’s Cac 40 up 1.3%). Shipping firms like Maersk saw 12% share increases, and Brent crude rose nearly 3% to $65.75 a barrel.
- Analysts, such as those at ING, upgraded China’s 2025 growth forecast to 4.7%, anticipating a surge in U.S.-China trade.
- Chinese commentators, like Hu Xijin and Wang Wen, view the deal as a diplomatic win for China, though Wang cautions that structural U.S.-China tensions persist.
No other countries are mentioned in this context as having secured similar tariff reduction agreements with the U.S. or China. However, the UK is referenced in comparison, with its recent U.S. trade deal maintaining a 10% U.S. tariff on UK imports without reciprocal UK tariffs, suggesting a less balanced arrangement than the U.S.-China deal.
