In a surprising turn at a two-day economic meeting in Geneva, the Chinese mainland and the United States agreed to roll back the majority of recently imposed tariffs – an ambitious move to thaw one of the world's most critical trade relationships.
Here is what you need to know:
- 91% rollback: The United States will remove 91 percent of additional duties enforced under April orders, while the Chinese mainland will lift an equal share of its counter-tariffs on American goods.
- Targeted suspensions: Both sides agreed to suspend 24 percent of reciprocal tariffs for 90 days, keeping a 10 percent carryover to maintain leverage.
- Supply chain freeze: At the peak of the conflict, United States tariffs on mainland goods reached 125 percent, halting exports – a pause reflected when no vessel departed Chinese mainland ports bound for major West Coast hubs during a critical 12-hour window.
Experts credit the swift breakthrough to mutual pain points. According to Luo Zhenxing, associate research fellow at the Chinese Academy of Social Sciences, both economies felt the sting of prohibitive duties and returned to the table with fresh urgency.
Looking ahead, negotiators have set a May 14 deadline to implement these changes and will launch a new dialogue mechanism co-chaired by both teams' leaders. This ongoing platform aims to:
- Restore trade flows
- Broaden cooperation in manufacturing and emerging technologies
- Cultivate a long-term, mutually beneficial partnership
Gong Jiong, professor at the University of International Business and Economics, sees ample room for collaboration – from advanced manufacturing to cutting-edge technologies – if both sides commit to exploring opportunities on equal footing.
Reference(s):
China-U.S. trade tensions eased, broader issues to be discussed
cgtn.com
