- On May 12, 2025, the US and China signed a pivotal trade agreement in Geneva, easing trade tensions by reducing reciprocal tariffs for 90 days and setting the stage for future negotiations.
- The US will remove April tariffs on Chinese goods but retain earlier ones, temporarily lowering tariffs to 30% during the pause. If no further agreement is reached, tariffs may increase to 54%.
- China will reduce tariffs on US goods to 10% and remove recent retaliatory tariffs. Both sides committed to further trade talks, creating financial relief for industries like tech, manufacturing, and consumer goods.
- Businesses should assess the short-term impacts of these tariff reductions on supply chains and costs. Monitoring future developments is essential as these relief measures remain temporary and could change.
Source: vatabout.com
