In a development that could ease global economic tensions, the United States and China have agreed to suspend or roll back most of the additional trade duties they imposed on each other over the past month. According to a joint statement released on May 12, both nations will halt their latest rounds of tariff hikes and move toward negotiating further policy adjustments aimed at stabilizing their critical bilateral relationship.

Following two days of intensive negotiations in Geneva, American and Chinese officials reached an understanding that could mark the beginning of a “total reset,” as US President Donald Trump described it. Under the agreement, the US will suspend the initial 34% tariffs introduced on April 2 for a period of 90 days. In a reciprocal move, China will also suspend its retaliatory 34% duties on American goods. Furthermore, both sides agreed to roll back all tariff increases imposed since April 8, although they will maintain a baseline 10% tariff on mutual imports.

This arrangement effectively leaves US tariffs on Chinese goods at an overall level of 30%, due to a 20% duty introduced earlier in March, while Chinese tariffs will stabilize at 10%. Importantly, China has also agreed to relax certain non-tariff barriers, such as easing export controls on US products, a step that American businesses have long demanded.

The measures will go into effect starting May 14. To........

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