In a notable shift toward reducing economic hostilities, the United States and China have agreed to a temporary rollback of tariffs for 90 days. This development, revealed on May 12, 2025, is the result of high-level discussions in Geneva involving key officials.
The temporary deal significantly trims down punitive trade barriers that had escalated during the peak of the trade standoff. Washington will lower its high 145% tax on Chinese imports to a more reasonable 30%. Beijing will reduce levies on American goods from 125% to 10% in exchange. These reductions are to be implemented immediately and will remain in place for three months, providing negotiators with breathing room to pursue a more enduring trade arrangement.
Financial markets around the globe welcomed the move. U.S. stock futures climbed sharply, with benchmark indices like the Dow Jones and Nasdaq reflecting renewed investor confidence. Meanwhile, Chinese technology giants such as Alibaba and Baidu saw their stock prices rise, signaling optimism in Asia’s trading corridors as well.
Though the tariff rollback is temporary, both governments have shown willingness to maintain open channels for ongoing economic dialogue. Observers view the establishment of a formal framework for continued negotiations as a promising step toward stabilizing one of the world’s most critical trade relationships.
