US and China Pause Reciprocal Tariffs for 90 Days, Effective May 2025

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.