China and the United States have agreed to remove or suspend most of the tariffs they recently imposed on each other, marking a significant step toward easing trade tensions between the world’s two largest economies.
The joint announcement came after a two-day high-level economic and trade meeting in Geneva, where both sides acknowledged the vital importance of their bilateral trade for their own economies and the global market.
“Both countries are feeling the immediate and tangible effects of the high tariffs,” said Luo Zhenxing, an associate research fellow at the Chinese Academy of Social Sciences’ Institute of American Studies. “The U.S. imposed extremely high tariffs on Chinese goods, prompting China to respond firmly to protect its own interests.”
Trade frictions began last month when U.S. President Donald Trump raised tariffs on Chinese goods to as high as 125 percent, bringing trade between the two countries to an almost complete standstill. On Friday, officials reported that in the previous 12 hours, not a single cargo vessel had departed from China bound for major West Coast ports.
In Monday’s joint statement, the U.S. committed to rolling back 91 percent of the additional duties it imposed on Chinese products under two executive orders issued in April. It also pledged to modify 34 percent of the reciprocal tariffs enacted on April 2 by suspending 24 percent for an initial 90-day period, while leaving the remaining 10 percent in place.
China, in response, will lift 91 percent of its counter-tariffs on American goods. For the 34 percent corresponding to the U.S. measures, it will suspend 24 percent for 90 days and maintain the other 10 percent. China also intends to suspend or remove corresponding non-tariff restrictions against U.S. products.
“The primary goal of the high-level meeting in Geneva is to restore bilateral trade first, and then to explore broader issues on that foundation,” said Gong Jiong, a professor of economics at the University of International Business and Economics.
Both sides agreed to implement these tariff adjustments by May 14 and emphasized the need to cultivate a durable, long-term, and mutually beneficial economic partnership. They also agreed to establish a mechanism for continued dialogue on trade and economic relations.
This mechanism will be co-chaired by the heads of the two countries’ respective teams, who will engage in both regular and ad hoc communications on bilateral trade issues. Future dates and venues for these meetings will be decided jointly.
“Broadening the cooperation agenda is also one of the tasks of the mechanism, fostering new advances in China-U.S. economic and trade relations,” added Gong. “There is considerable room for collaboration between China and the U.S. in manufacturing, emerging technologies, and other fields.”
