The United States and China have agreed to a 90-day reprieve on the massive tariffs that had stalled trade between the world’s two biggest economies. The announcement comes after a weekend meeting in Geneva.
In a joint statement the two countries said the combined U.S. tariffs rate on Chinese imports will be cut to 30% from 145%, while China’s levies on U.S. imports will be cut to 10% from 125%. Both sides will take these actions by May 14.
Upon hearing the announcement, National Retail Federation President and CEO Matthew Shay, issued a statement, saying “We applaud the U.S. and China for agreeing to a 90-day pause on the 125% reciprocal and retaliatory tariffs. We are encouraged by these constructive negotiations, which provide for a significant de-escalation in the current trade relationship.”
He adds, “This temporary pause is a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season. And over the long term, this lays the foundation for substantial progress in achieving truly fair and balanced trade relationships with both China and our other trade partners around the world.
Shay concluded by saying, “We urge the administration and our Chinese trade partners to continue discussions to address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies.”
According to a White House Fact Sheet: By imposing reciprocal tariffs, President Trump is ensuring our trade policy works for the American economy, addresses our national emergency brought on by our growing and persistent trade deficit, and levels the playing field for American workers and producers.
While the announced easement caused markets to surge on May 12, concerns about the costs of consumer goods still rising due to higher tariffs in general since Trump took office still linger among some economists.
