The United States and China have agreed to slash tariffs on each other’s goods for 90 days in a landmark trade deal.
According to NBC, in a major breakthrough the two biggest economies of the world, us and China, on Monday, May 12, 2025, announced that they have agreed to halt most of the tariffs imposed by both of the countries in April.
The countries in a joint statement said that the US tariffs on Chinese imports will be cut to 30% from 145%, while China’s levies on US imports will be cut to 10% from 125%.
The announcement came after a round meeting between the officials of the two countries in Geneva, Switzerland, over the weekend.
US Trade Representative Jamieson Greer told reporters in Geneva, “We were able to have very constructive and positive conversations with our Chinese counterparts, who clearly came to deal this week.”
US and China to continue discussion for trade relations
In a joint statement released, the US and China said that they recognise “the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship” and have agreed to establish a “mechanism to continue discussions about economic and trade relations.”
“These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues,” it added.
The Geneva talks were led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and Greer.
US dollar and Chinese yuan rise after trade deal
Right after the announcement of the trade deal between the largest economies, the currency of the two countries recorded a significant rise.
After the suspension of heavy tariffs, the value of the US dollar and Chinese yuan. Both currencies valued up against the euro and Japanese yen, while the Chinese yuan also rose against the dollar.
