In a landmark meeting in Geneva, the US and China released a joint statement to calm one of the world’s biggest trade frictions. Recognizing their mutual economic heft—accounting for roughly 40% of global GDP combined—the two sides agreed on a 90-day truce on punitive tariffs.
For American importers, the US will suspend 24 percentage points of additional duties on Chinese goods—including articles from the Hong Kong Special Administrative Region and the Macao Special Administrative Region—for 90 days, keeping a residual 10% rate. Likewise, Beijing will roll back equivalent tariffs on US exports and lift non-tariff barriers imposed since April 2.
This move follows months of talks aimed at stabilizing supply chains, lowering consumer prices, and rebuilding investor confidence. Tariffs on electronics, auto parts, and machinery have weighed heavily on businesses on both sides of the Pacific.
To cement the momentum, both parties will launch a fresh dialogue by May 14, 2025. China’s delegation will be led by Vice Premier He Lifeng, while the US team includes Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer. Meetings will rotate between the US, China, or a neutral third country.
Analysts say this pause could shave billions off import costs, potentially boosting global trade by up to 2% this year. Entrepreneurs and supply-chain managers will watch closely as the 90-day countdown begins.
As the countdown ticks, millions of entrepreneurs, young professionals, and digital nomads will be keen to see if this temporary harmony lays the groundwork for deeper economic cooperation, sustainable growth, and a more predictable global market.
Reference(s):
Joint statement on China-U.S. economic and trade meeting in Geneva
cgtn.com
