US and China agree to slash tariffs for 90 days

[BumRushDaShow]

Last edited Mon May 12, 2025, 04:44 AM - Edit history (1)

Source: BBC

42 minutes ago


The US and China have agreed a deal that will significantly cut the import tariffs, or taxes, both sides have imposed on one another for a 90-day period. US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days. The announcement came after the two countries held intensive talks in Switzerland over the weekend.

It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January. President Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods. However, the US tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time.

The US measures still include an extra component aimed at putting pressure on Beijing to do more to curb the illegal trade in fentanyl, a powerful opioid drug. But US officials said they had been positively surprised by the willingness of China to deal with the problem. "Both countries represented their national interest very well," Bessent said.

"We both have an interest in balanced trade, the US will continue moving towards that." When the original tariffs were imposed it caused turmoil in the financial markets and sparked fears of a global recession.

Read more: https://www.bbc.com/news/articles/czx0ry7kdk5o

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Breaking all over although most articles are still "live updates".

Article updated.

Original article -

8 minutes ago


US and China have agreed a temporary cut to the tariffs they impose on each other's imports. US Treasury Secretary Scott Bessent said both countries would lower their reciprocal tariffs by 115% for 90 days.

The announcement came after both China and the US had held trade talks in Switzerland over the weekend, which Bessent had previously described as "productive and constructive".

It was the first meeting between the two countries since US President Donald Trump had levied steep tariffs against China on its goods entering America in January.

Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods. The huge tariffs caused turmoil in the financial markets and sparked fears of a global recession.

[SunSeeker]

1. So, US tariffs were cut from 145% to 30%, while China's were cut from 125% to 10%.

HONG KONG — The United States and China said Monday they had agreed to a 90-day pause on most of the tariffs they have imposed on each other since last month, in a major step toward easing a trade war between the two powers that has rattled the global economy.

U.S. tariffs 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%, the two countries said in a joint statement.

The announcement comes after the two countries met in Geneva, Switzerland, over the weekend to discuss the mounting tariffs, which have made trade between the world’s two largest economies all but impossible.

The two countries said they would also “establish a mechanism to continue discussions about economic and trade relations.” The U.S. will continue to be represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, while China will continue to be represented by Vice Premier He Lifeng.

https://www.nbcnews.com/world/asia/tariffs-china-trump-agree-slash-levies-duties-business-markets-bessent-rcna206193

That's quite a cave from 80%, let alone 145%! 30% is still too much, of course. I don't expect it will stay 30% for 90 days, as our ports languish and shelves become bare. Trump's caving will continue.

Trump’s tariff war has been a pointless, destructive shitshow.

[Bluetus]

34. 30% is highly inflationary

If we figure that the imported product is 50% of the effective retail price, this is a 15% price increase on anything imported from China

[BaronChocula]

2. The damage is already done!

Unless you're a stock monkey.

Then what happens after three months? Businesses are not keen on uncertainty. But the rapist and his regime are the champion of businessfolk. This is who they favored. This is who they bow to. Good luck through the recession.

[enid602]

3. lost orders

‘The damage is already done!’ What happens with all of China’s CANCELLED orders of US agricultural productos and 2025 deliveries of Boeing aircraft? I don’t think they can be turned on and off like a spigot. China has already said they don’t need to buy anything from us.

[SunSeeker]

5. Yup. Our soy bean farmers have now lost the huge Chinese market for their product to Brazil.

Probably for good. But they'll still support Trump.

[Bengus81]

19. Yep..and USAID grain sales too. But hell....keep voting for Republicans idiots.

[Irish_Dem]

7. Huge damage for generations. All for nothing.

[everyonematters]

14. I agree, and the tariffs that are left are still substantial enough to cause damage. unless they cut them down to

2 or 3%.

[24601]

17. "Stock Monkey"? If you mean people who care about the stock market, you are referring to most people with an IRA, 401K,

or Thrift Savings Plan. It would also include those without individual accounts but whose union, or state and local government retirement systems invest in the market, primarily mutual funds.

Here is the link to the 2022 Census Report, breaking down who has individual accounts. https://www.census.gov/library/stories/2022/08/who-has-retirement-accounts.html

If your thrust is to divide voters based on who cares about and who doesn't, it's not a winning strategy. Figure 2 reflects that the following demographics had at least one type of individual account:

Ages 56-64 58.1%
Ages 45-55 56.1%
Ages 24-39 49.5%
Ages 15-23 7.7%

Before retirement, I attended classes from the non-profit Society for Financial Awareness. The information presented was that the conventional wisdom of shifting IRAs to Government Securities upon retirement will almost always deplete your retirement account before you die. Modeling shows that to maintain account viability, you should retain around 62% in equities.

[BaronChocula]

35. No.

That's NOT whom I meant.
I certainly wasn't talking about myself.

[IronLionZion]

24. It's market manipulation

since insiders in this administration know when these policies will be announced and reversed, and how the market will react. So they sell or buy in advance of everyone else. Easy money for them and the expense of everyone else.

[forgotmylogin]

36. And optics manipulation.

Donnie just wants the headline to say he "made a successful deal" so he can crow about it even if it is just hitting the snooze button on his manufactured tariff crisis. I sincerely doubt China did anything except say no and he's like "Okay, I'll wait 90 days and you'd better be ready to negotiate then!"

He's probably hoping they'll ship some stuff to validate the 10% tariff so he won't look bad since there's no port activity.

[brush]

29. Yes, the damage is done. If TSF has kept his hands off what he obviously doesn't understand...

everything would've continued on smoothy as it was going under Biden.

The dumb fuck thinks he knows what he's doing.

NOT.

[muriel_volestrangler]

4. "The USA just surrendered to China"

This mornings’ press conference was a classic: Let’s be honest about what happened – the USA started a trade fight. China slapped them back. Greer sounded offended when he reminded us they were the only country to retaliate – everyone else wanted to negotiate – hence the ratcheted up to the 145% tariff bill. Yet, by retaliating – China is now on same broad terms as the USA’s no 1 ally, the UK? Classic bully story. Bully hits someone. Someone hits back. Bully stands down.

There were so many conflicting narratives being proposed by the Bessent/Greer double-act. Apparently, it’s all about Fentanyl – Bessent cited the Chinese willingness to support the US crushing the Mexican gangs flooding the USA with Fentanyl. Or it’s about how the terrible state of US/China trade was due to the last 4 years of the Biden administration allowing trade negotiations to “atrophy”. Or maybe it was about about the deal being part of rebalancing of US supply chain weaknesses post Covid.
...
It also raises the fundamental issue – the USA can’t afford a trade war. The USA is indebted to the tune of $36 trillion. Trump is promising the big beautiful bill to cut taxes. But as DOGE’s failure showed, he can’t cut spending. The US Military costs nearly $1 trillion per annum and is the only substantive item that could be cut – which he can’t as he has stirred up global tensions. In the Treasury market there is the truth about the US – watch what happens next.

More to the point, a trade/inflation shock is still going to occur as a result of his actions. The upside is it might be slightly less damaging that initially feared. He is unlikely to deliver any of his MAGA promises to voters – except on immigration, which I expect he will big-up to deflect from his trade and economic failures.

https://morningporridge.com/blog/trade/the-usa-just-surrendered-to-china/

[BootinUp]

21. The analysis above is suspect

"Yet, by retaliating – China is now on same broad terms as the USA’s no 1 ally, the UK?"

How is 30% the same as 10%?

It appears that tariffs are higher on both countries, than they were before Trumps trade war. But it also is pretty clear that there are higher tariffs on China than on the UK.

All this analysis both from journalists and my opinions are based on the reporting in this thread and some of that may turn out to be simply wrong.

[Irish_Dem]

6. Does not help the market uncertainty at all.

No one knows what will happen in 90 days.
No one can make plans this way.

And the damage is done to the US reputation as a stable economy.

All for nothing.

[LymphocyteLover]

10. the stock market will go up of course on this news, which is all the admin cares about

just short term positive news

[Irish_Dem]

11. How much money has the Trump crime family made on market manipulation and insider trading?

[LymphocyteLover]

32. No idea on the amount but clearly it is way too much

[BlueTsunami2018]

8. It's almost like these idiots should have just left well enough alone.

In fact, it’s exactly like that.

All this chaos for absolutely no reason.

[wolfie001]

9. Dow futures up 800 points

What a fucking joke. 90 days brings zero certainty. More instability. WTF?

[Prairie Gates]

12. Wasn't there already a 25% tariff on China?

[BumRushDaShow]

15. Found a site that was actually tracking and plotting it since 2018

through Biden's administration, and to date - https://www.piie.com/research/piie-charts/2019/us-china-trade-war-tariffs-date-chart

It was generally at 20% through both BUT that was only on certain products.

NOW during this 2nd 45 administration, the tariffs have been pretty much on everything.

Recall back during the 1st term, no one heard any whining about "toys" but the soy farmers were having a fit (until they got subsidized).

[Johnny2X2X]

13. So we don't need those trillion factories to open in the US anymore?

Good.

The whole thing was idiocy. The US has pretty good deals with everyone, including China. We don't need shitty factory jobs back honestly.

But isn't this inconsistency from the amdinstration? They have spend 5 months telling us that without these tariffs no jobs would return.

[Bluestocking]

16. Let's put this in perspective

The Chicken Tax on light duty trucks is 25% and as a result no auto manufacturers import light trucks to the US. They are all made in North AmerIca. So how is 30% going to be manageable? Almost everything we buy is now 30% more expensive.

[dalton99a]

18. +1. But inflation will be zero

[Bengus81]

20. Market manipulation BS along with his cut on drug prices SCAM. DOW up 1000+ in pre-market

That's all that matters to Trump is the DOW.

[hadEnuf]

22. Trump single-handedly created this disaster and now he is touted as a hero for getting "concessions"

from China due to his wonderous, stupendous negotiating skills? We went from 10% to 145% and now 30% for 90 days.
Still a loss of 20% for us. This is sheer nonsense.

The American people are in a stupor....

[thesquanderer]

23. People don't get math. If you lower something "by 115%," it actually becomes negative. (n/t)

[Jacson6]

25. President Chaos strikes again.

He is such a stable genuis!

[._.]

26. Not Sure..

The markets and shippers got pretty spooked, and I don't think this is gonna be enough to quell all that uncertainty.

[OrlandoDem2]

27. Does that mean there's a 30% tariff on imports from China???

That’ll still be passed to the consumers. Right?

[madville]

30. Before all this started it was around 20%

Both the U.S. and China were at 20% both ways for years, was around that level all the way through the last administration.

[louis-t]

28. Ohhh, that's why the markets shot up this morning.

So useless, this orange monster waving his little mushroom in everyone's faces.

[jmowreader]

31. I'm going to take a wild stab here...

...and assume that the short-sellers Trump kowtows to called him up and said, "look Don, we need stock prices to go back up for a little while so we can justify doing another cycle."

[republianmushroom]

33. trump didn't blink, he flinched and dropped his cards.

[Initech]

37. Can we just admit this was an extremely stupid and terrible idea and move on already?