In a major development in the ongoing U.S.-China trade dispute, both countries have agreed to a 90-day pause on most of the tariffs they’ve imposed on each other in recent months — a temporary truce aimed at cooling one of the world’s most consequential economic conflicts.
The agreement, announced jointly after face-to-face negotiations in Geneva over the weekend, significantly scales back tariffs. The U.S. will lower its tariff rate on Chinese goods from 145% to 30%, while China will reduce its duties on U.S. imports from 125% to 10%.
This marks the first direct dialogue between the two sides since President Donald Trump’s abrupt “Liberation Day” declaration last month, which triggered a rapid escalation in trade duties. That move had brought tariffs to record highs within days, leading to widespread concern among businesses and trade experts.
The revised 30% U.S. tariff reflects a combination of a 20% duty imposed earlier in Trump’s second term in response to China’s alleged failure to curb fentanyl exports, and a 10% across-the-board tariff placed on all countries.
Despite the pause, experts caution that tariffs remain significantly higher than before Trump took office — and the 90-day window may not provide enough time to resolve deeper structural issues. “The full set of U.S. tariffs remains much broader than what markets and businesses expected at the start of the year,” noted analysts at Goldman Sachs, calling the move a “temporary reprieve rather than a resolution.”
U.S. Trade Representative Jamieson Greer described the talks as “very constructive and positive,” saying that Chinese negotiators arrived in Geneva prepared to reach an agreement. Treasury Secretary Scott Bessent, who also took part in the discussions, said the tariffs had become “the equivalent of an embargo” — something neither side wanted.
“We want trade, and we want it to be more balanced,” Bessent said. “Both sides are committed to that goal.”
Asked whether it would have been better to begin with negotiations instead of unilateral tariff hikes, Bessent said previous diplomatic efforts had failed to change the status quo. “We tried business as usual. It didn’t work.”
The Chinese Commerce Ministry called the agreement an “important step” toward narrowing differences and deepening cooperation. “It is hoped that the U.S. will build on this foundation,” a ministry spokesperson said, “and fully correct its unilateral tariff practices.”
The deal also establishes a formal mechanism for continued economic dialogue, with future talks expected to alternate between the U.S., China, or a neutral third country. Greer and Bessent will continue to represent the U.S. side, while China’s delegation will be led by Vice Premier He Lifeng.
Separate discussions are expected to continue regarding fentanyl trafficking. Bessent indicated that China is now more serious about cooperating on the issue, which has been a major sticking point in U.S. trade and security policy.
While the U.S. has no plans for full economic decoupling, Bessent said strategic decoupling in key sectors is likely. “During COVID, we realized that efficient supply chains aren’t always secure,” he said. “For critical materials like semiconductors, steel, and medicine, we need to rebuild self-reliance.”
The impact of prior tariffs was already being felt, with a noticeable drop in container shipments from China to the U.S. since April. Some Chinese exporters have lost U.S. orders in recent weeks due to the uncertainty and cost increases.
While many tariffs remain — including earlier ones related to fentanyl and other strategic sectors — negotiators say the tone has shifted. Bessent suggested another round of talks could take place “within weeks” as the two sides work toward a broader, longer-term agreement.
