US and China Agreement on a break in trade war

This article was last updated on May 12, 2025

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US and China Agreement on a break in trade war: Lifts down

The United States and China put the extra import tariffs against each other in the refrigerator for the time being. The countries have agreed to insert a ninety -day break, was announced this morning through a joint explanation.

In this, the US and China say that they find their economic relationship important. And that they believe that they can come to a solution after longer negotiation.

The intention is that the United States will reduce the rate from 145 percent to 30 percent from Wednesday. China, in turn, lower the taxes from 125 percent to 10 percent.

Conversations

Last weekend China and the US started conversations about the trade war in Geneva, Switzerland. Yesterday the American president Trump said there “Great progress has been made” In a “friendly, constructive way”.

Trump decided to tackle China because in his eyes the country exports much more goods to the US than the other way around. China, in turn, hit hard with its own import tariffs on American products.

In Geneva, Switzer, the US and China consult on the trading rates that got out of hand. Economist Mathijs Bouman explains.

US and China consult about trade

Last week the US already closed one Deal with Great Britain. On British goods to the US, an import rate of 10 percent will continue to exist. But the import duties on steel and aluminum, among others, are deleted.

For the European Union, a ninety -day break was previously established on an additional 20 percent levy. There is, however, a standard tax of 10 percent in force. There are not yet conversations to close a deal.

The European Commission threatened last week to increase the pressure tax Can be introduced on various American goods that together are worth 95 billion euros.

Why not 0 percent? China correspondent Gabi Verberg explains

“The difference between the American import levy of 30 percent on Chinese goods and the 10 percent Chinese import levy for US goods is probably in the fentanyl levy. In February this year, the US introduced 20 percent import tax against China’s alleged role in the illegal fentanyl trade.

Although China and the US have achieved a lot in recent years to combat the import of illegal Fentayl, it is not enough for President Trump. China, in turn, continues to claim that the US is trying to shift its domestic fentanyl problem in China. Nevertheless, the 20 percent import levels probably remain as ‘punishment’. However, the countries have indicated that they will remain in conversation to solve the fentanyl problem.

China has also indicated that it will take all necessary steps to cancel or stop the non-tariff countermeasures that have been against the US since 2 April, such as export restrictions against certain companies. “