The United States has dropped its tariffs on Chinese goods to 30%, down from a brutal 145%, while China is slashing its own duties on US imports to just 10%, temporarily, for the next 90 days.
This is not permanent. This is a tactical pause in a trade war that’s been spiraling since early April, when Trump yanked up import taxes on China and Beijing fired back with its own penalties.
This sudden easing comes from a closed-door deal that was hammered out in Geneva, where both governments agreed they couldn’t keep messing up their supply chains without blowing up trade altogether. The decision is designed to stop the economic bleeding, not to fix the damage. Treasury Secretary Scott Bessent said:
“We had very productive talks and I believe that the venue, here in Lake Geneva, added great equanimity to what was a very positive process. We have reached an agreement on a 90-day pause and substantially move down the tariff levels. Both sides on the reciprocal tariffs will move their tariffs down 115%.”
Back in April, Trump decided to crank up tariffs on Chinese imports, triggering an immediate response from Beijing.
The tariffs set by the US were pushed all the way to 145%, which made it impossible for American companies to buy Chinese-made goods without getting price-gouged.
China, in return, spiked their tariffs on American exports to 125%, choking off sales for US farmers and manufacturers. That tit-for-tat turned into an economic cage match.
The damage came fast. Trade between both sides tanked. Big businesses started sweating. Executives didn’t see a way forward. Last month, Bessent admitted that the situation was “unsustainable.” That was before they flew out to Geneva to hammer out this short-term fix.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
