The US and China agree to a deal to lower tariffs for the next 90 days, a sign of easing tensions; the US plans to cut tariffs on Chinese goods from 145% to 30%

Deal to reduce duties for next 90 days marks the first sign of tension easing between the two economic superpowers

Financial Times 2025-05-12

Context & Ripple Effects

The 90-day arrangement follows the U.S. move to impose 125% tariffs on China while pausing tariffs on most other countries, making it a sharp but explicitly temporary reversal of the most acute bilateral escalation. It also echoes earlier limited trade arrangements that sought to avert tariffs affecting companies including Apple.

Related coverage suggests the pause became part of a recurring truce-and-renewal pattern: a later yearlong U.S.-China truce rolled back further tariff and retaliatory measures. That makes the immediate cut important less as a final settlement than as a reset of negotiating leverage and near-term trading conditions.

First-order effects

Importers of Chinese goods into the U.S. face a much lower tariff rate—30% rather than 145%—for the 90-day window, reducing the immediate cost shock on affected supply chains.
Chinese exporters regain a clearer, lower-cost route to U.S. buyers during the pause, while both governments retain the ability to revisit terms when it ends.

Second-order effects

U.S. retailers, brands, and manufacturers that source from China can reassess emergency purchasing, inventory, and pricing decisions made after the China-specific tariff escalation.
The short duration limits long-term supply-chain commitments: businesses gain room to resume trade, but still have incentive to preserve alternative sourcing and contingency plans.

Third-order effects

If tariff relief continues to arrive through time-limited truces, trade policy becomes a recurring operating variable for global supply chains rather than a one-off cost change.
The pattern could entrench a bifurcated sourcing strategy—maintaining China exposure while building alternatives—unless a more durable bilateral framework replaces rolling deadlines.

The trend: U.S.-China economic policy is shifting toward negotiated, temporary tariff management that relieves immediate pressure without resolving the underlying strategic rivalry.

Discussion

@katjabego Katja Bego on bluesky
The U.S. and China agree to temporarily slash tariffs from 145% to 30%. — Feels a bit like a prisoner seeing their triple life sentence reduced to a single one. Sure, it's a nominal improvement - but a 30% tariff is still going to cause a lot of pain. — www.ft.com/content/92…
@emoltzen Ed Moltzen on bluesky
Alternate Headline: — After Pummeling, Trump Moves Closer to Biden Tariff Levels with China
@dandrezner Daniel Drezner on bluesky
“Even as China agreed to roll back punitive measures it has imposed over the past month, multiple Chinese agencies, including the Ministry of Commerce and the Ministry of State Security, met to discuss how to strengthen export controls of strategic minerals.” www.nytimes.com/2025…
@karlkuszaj Karl Kuszaj on bluesky
Does it feel like China was trolling Trump by setting their initial tariff hike at 34%—matching his 34 felony convictions? Meanwhile, the White House is declaring victory, but it kind of undermines Trump's whole “we're saving money by not trading with China” argument. — www.ny…
@kagrox David Waldman on bluesky
Trump math: Our “department store” just lost 115% of our profits. www.nytimes.com/2025/05/12/b...
@emperorsclothes @emperorsclothes on bluesky
But I just finished hiring 1000 workers for the doll factory I built in the US this past month. I thought we were going to have less dolls and I could reply on protection to make them here. www.nytimes.com/2025/05/12/b...
@beyerstein Lindsay Beyerstein on bluesky
Trump removes gun from own head for 90 days, no concessions from China.
@joshtpm Josh Marshall on bluesky
Okay, so in huge victory the likes of which has never been seen before Trump puts back on the ground the rake he stepped on four weeks ago. www.cnbc.com/2025/05/12/u...
@abenewman Abe Newman on bluesky
1/Latest in tariff omnishambles. This is not a deal. The US just blinked. The lesson for China: US escalation cannot be maintained. For the US: we will still see inflation and the chance of recession. For the world: the end of US credibility. — www.nytimes.com/2025/05/12/b…
@drodrik Dani Rodrik on bluesky
As the US and China step back from a needless trade war, it is worth noting that (a) US tariffs on China will remain high (30%) and will hurt mainly US consumers; and (b) Trump has obtained absolutely nothing from China for all the chaos he generated. Zilch. www.nytimes.com/2025…
@hern Alex Hern on bluesky
Very annoying that this has happened quickly enough that guitar manufacturers didn't have time to lower UK prices to offload a glut, I was really hoping for a new acoustic [embedded post]
@wiseacre.me @wiseacre.me on bluesky
We did it you guys! We're all rich now! Every factory is now located in the US! Kids can have 30 dolls. Congrats! We did it. A meaningless and unnecessary trade war ended the way it started - confusingly and stupidly. — www.nytimes.com/2025/05/12/b...
@nathansnewman @nathansnewman on bluesky
Trump gets nothing - but agrees to reduce stupid tariffs he imposed to get China to reduce tariffs it imposed in response - but leaves tariffs at a still stupidly high level of 30%, so consumers will continue to suffer — www.nytimes.com/2025/05/12/b...
@chasecarter @chasecarter on bluesky
We're trading clownshoes numbers for normal amounts of scary, but it's still going to dessicate the tabletop industry. Also, good luck to everyone squeezing as much global distro as possible into 90 days, I guess!
@paularmstrongtbd Paul Armstrong on bluesky
Trump cannot stop blinking. [embedded post]
@judah-grunstein Judah Grunstein on bluesky
Surprised they announced it before the stock market opened so they could cash in, tbh.
@whitehouse @whitehouse on x
BREAKING: U.S. Announces China Trade Deal in Geneva [image]
@typesfast Ryan Petersen on x
Get ready for a shipping boom.
@trumpdailyposts @trumpdailyposts on x
IN JUST THREE MONTHS, TRILLIONS OF DOLLARS (and therefore, record numbers of JOBS!) HAVE BEEN POURING INTO THE USA. THIS IS BECAUSE OF MY TARIFF POLICY, and our great November 5th Election WIN! The very STUPID Democrats are doing everything within their power to disparage what is
@justinwolfers Justin Wolfers on x
Funny aside: At this point the US and China are still yet to agree on who called who to suggest they talk in Geneva.
@chenweihua Chen Weihua on x
China and U.S. will on Monday issue a joint statement reached at the two-day trade talks in Geneva over the weekend. Asked what will be the exact timing for the release of the joint statement on Monday, Li Chenggang, China's international trade negotiator and vice minister of [im…
@onlyyoontv Eunice Yoon on x
#China state TV social media account says the outcome of trade talks with @realDonaldTrump team shows “China's firm countermeasures and resolute stance have been highly effective.” (China gets nearly all #tariffs off for doing very little other than agreeing to talk— a [image]
@meiselasb Ben Meiselas on x
So we went from 145 percent tarrifs against China to 30 percent tariffs after Trump told us for months 145 percent tariffs and no ships coming to port was brilliant? We screwed with the lives of workers and small biz owners and shattered consumer confidence, and got what exactly?
@jingjing_li Li Jingjing on x
JUST IN: Both China🇨🇳and the US🇺🇸 pledged to remove 91% of the April tariffs and suspend 24% over the next 90 days. Full text of Joint Statement on China-U.S. Economic and Trade Meeting in Geneva: https://english.news.cn/... [image]
@josephpolitano @josephpolitano on x
Official White House Statement: “oof ouch owie stove hot”
@vtg2 Victoria Guida on x
This from Chinese state-run media on the US-China trade talks this weekend seems to suggest that the two sides have agreed to a mechanism for further negotiations [image]
@henrysgao Henry Gao on x
Who made more concessions? The Chinese text lists 2 from each side, but that's misleading: China's #1 covers both of the US points, while China's #2—suspending non-tariff measures from April 2—isn't matched by anything on the US side. So who caved? Told you (on Apr 5).
@jamessurowiecki James Surowiecki on x
So the “deal” is, as expected, a pause on tariffs.
@thestalwart Joe Weisenthal on x
“The combined 145% US levies on most Chinese imports will be reduced to 30% including the rate tied to fentanyl by May 14, while the 125% Chinese duties on US goods will drop to 10%, according to the statement and officials in a briefing Monday in Geneva.”
@henrysgao Henry Gao on x
MOFCOM just published the deal: 1. Original 34% tariff remains, but 90 day pause for 24%; 2. All retaliatory tariffs are gone. What remains: 1. 10% tariffs from Apr 2; 2. 20% Fentanyl tariff; 3. 25% Trump 1 tariff. That's the same China would've got had it not retaliated. [image]
@henrysgao Henry Gao on x
Confirmed by the English version released by @WhiteHouse: https://www.whitehouse.gov/... [image]
@mrmbrown Michael Brown on x
So...the US went from negligible tariffs on China, to 10%, then 20%, then 54%, then 104%, then 145%...now we're back to 30% for 90 days...and that's supposedly a ‘win’...
@nicknotned Nick Denton on x
Tariffs — at the level now envisaged for China — will not fix the US balance of payments imbalance. So that can only now be achieved through exchange-rate adjustment.
@edwardlawrence Edward Lawrence on x
U.S. Trade Representative Greer about China: “It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought. That being said, there was a lot of groundwork that went into these two days.”
@josh_wingrove Josh Wingrove on x
The US announces a “China Trade Deal,” without specifics. Bessent's statement cites “substantial progress between the United States and China in the very important trade talks.” [image]
@spoxchninus Liu Pengyu on x
Chinese Vice Premier #HeLifeng: 🔹The high-level meeting on economic and trade affairs between 🇨🇳🇺🇸 in #Geneva was candid, in-depth and constructive. 🔹Both sides have reached an agreement on establishing a #China-#US economic and trade consultation mechanism and will conduct [vide…
@thestalwart Joe Weisenthal on x
CHINA-US agree to lower tariffs on each other for 90 days. Stock futures absolutely soaring. https://www.bloomberg.com/... [image]
@dgt10011 Jeff Park on x
US: we reached a trade deal CHINA: we agreed on establishing rules for future engagement The widest bid/offer the likes of which you have never seen
@thestalwart Joe Weisenthal on x
“US Treasury Secretary Scott Bessent said that the US and China agree neither side wants to decouple, adding there were “robust” discussions on fentanyl and that talks could lead to “purchasing agreements” by China”
@hblodget Henry Blodget on x
Phew. Unfortunately still a 30% tariff that will hammer Americans and American companies, and unfortunately only postponed 90 days instead of indefinite. But at least we no longer have a trade embargo with a critical trading partner.
@freightalley Craig Fuller on x
Assuming this structure is workable for US importers, the freight market may rebound in electric fashion and Q3 be one of the best markets in history. There is so much pent up demand and importers will take no chances.
@elerianm Mohamed A. El-Erian on x
A large 90-day coordinated tariff reduction by the world's two largest economies - from 125% to 10% for China and from 145% to 30% for the US - has spurred major global market movements, including higher stocks and bond yields, a stronger dollar, a rise in oil prices, and lower […
@javierblas Javier Blas on x
🇺🇸🇨🇳 At least, a temporary reprieve in US-China trade war. Washington and Beijing agree to lower tariffs while talks continue over next 3 months: US to lower tariffs on China to 30% (from 145%) for 90 days China to lower tariffs on US to 10% (from 125%) for 90 days
@rajakorman Karthik Sankaran on x
From Zero Sum To Positive Sum Over Dim Sum!
@grummz @grummz on x
China and US to drop tariffs 115% for 90 days. A lot of tabletop companies charged more for these tariffs. Now they are back down to almost what they were previously. [video]
@geringtuvia Tuvia Gering on x
Hu Xijin, ex-editor of CCP tabloid Global Times (excerpts in yellow): “This is a significant victory for China in preserving the principles of equality and mutual respect. So far, no other country has reached such equal negotiation terms with the US. “An equal agreement [image]
@joristeer Joris Teer on x
“China will ... (ii) adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.” anyone got confirmation heavy rare earth/ magnet/ etc controls are off too (for now)? https://www.whitehouse.…
@thestalwart Joe Weisenthal on x
The two big losers today: - People hoping for a Trump-led economic catastrophe - Members of the Big Chess Party, who thought the tariff announcement was some brilliant, strategic plan that would reshape the global economy in a way that was beneficial for the US.
@faisalislam Faisal Islam on x
FULL joint statement China-US on very substantial suspension of tariffs effectively cut by 115% for 90 days between China and US. Major deescalation.... [image]
@chenweihua Chen Weihua on x
Chinese Vice Premier He Lifeng said in Geneva on Sunday that China and the U.S. agreed to establish a consultation mechanism of trade and economic issues, identify the lead persons on each side and will carry on further consultation relating to trade and economic issues of their …
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浪友们预测一下谈成啥了
r/wallstreetbets r on reddit
BREAKING: U.S. Announces China Trade Deal in Geneva
@timlongman @timlongman on bluesky
Wait, so “rolling back” tariffs still leaves 30% tariffs in place? Like a 30% price increase instead of a 145% increase is some kind of victory? Trump is such a loser.
@gateklons @gateklons on bluesky
Congress should pass a tarrif transparency law that shows people how much prices are affected by tarrif hikes — But no political will even for that, even some Democrats don't have a problem with tarrifs — www.wsj.com/tech/apple-i...
@carlquintanilla Carl Quintanilla on bluesky
Everyone has “cover” now. 🤡 — @wsj.com $AAPL — www.wsj.com/tech/apple-i... [image]
@markgurman Mark Gurman on x
A look at the situation from April- “Apple will seriously consider iPhone price adjustments.” It helps that consumers have probably heard about the outside factors here and won't see it as a cash grab."
r/iphone r on reddit
Apple Considers Raising iPhone Prices, Without Blaming Tariffs | WSJ
@triangulator.org Kevin Webb on bluesky
OpenAI's problems are way bigger than tariffs, but still... “But uncertainty is weighing on talks. With tariff discussions on the table for everything from server racks to cooling systems and chips, data center build costs may rise by 5% to 15%, with some operators facing even …

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