US to slash reciprocal tariffs on China by 115%

The United States and China said on Monday they have agreed a deal to slash reciprocal tariffs as Washington and Beijing seek to end a trade war that has disrupted the global economy and set financial markets on edge. Speaking after talks with Chinese officials in Geneva, US Treasury Secretary Scott Bessent told reporters the two sides had reached a deal for a 90-day pause on measures and that reciprocal tariffs would come down by 115 percent.A joint statement about the agreement states that the 90-day suspension will commence on May 14.
The deal puts an end to the ongoing trade war between the two largest economies in the world. The Geneva meetings marked the first in-person discussions between high-level U.S. and Chinese economic officials since President Donald Trump resumed office and initiated a worldwide tariff war, with especially steep levies targeting China. Since his inauguration in January, Trump has raised the tariffs that American importers must pay on Chinese goods to 145%.The White House in a statement said the trade talks recognise the importance of bilateral economic and trade relationship to both countries and the global economy and the importance of a sustainable, long-term, and mutually beneficial economic and trade relationship.

BREAKING: U.S. Announces China Trade Deal in Geneva pic.twitter.com/JjgvYAvAGe

— The White House (@WhiteHouse) May 11, 2025

In 2024, the United States' total goods trade with China was approximately $582.4 billion, according to the Office of the U.S. Trade Representative. U.S. exports of goods to China amounted to $143.5 billion, representing a 2.9% decrease ($4.2 billion) compared to 2023. Meanwhile, imports of goods from China reached $438.9 billion, marking a 2.8% increase ($12.1 billion) from the previous year. As a result, the U.S. goods trade deficit with China rose to $295.4 billion in 2024, up 5.8% ($16.3 billion) from 2023.