Saturday, March 29, 2025
The United States and China have taken a major step to ease trade tensions. Both countries signed a 90-day agreement to stop imposing new tariffs starting May 14, 2025. This marks a turning point in their prolonged trade conflict.
Under this deal, the US will lower tariffs on Chinese imports from 145% to 30%. In response, China will reduce tariffs on American goods from 125% to 10%. These cuts aim to create a more stable environment for trade talks.
China has also agreed to resume exports of critical minerals to the US. Earlier, it had banned them as part of retaliatory measures. However, the US has kept some import restrictions on Chinese products, showing that deeper issues still remain.
This 90-day truce first took shape during talks in Switzerland. Global markets have welcomed the move, especially countries like the UK that were indirectly affected. The temporary deal gives both sides time to negotiate long-term solutions.
Trade experts believe this could lead to more balanced ties between the world’s two biggest economies. For the first time since Donald Trump took office, the US and China appear to be easing hostilities.
In 2024, the US exported large quantities of soybeans to China, mostly for livestock feed. The US also sent pharmaceuticals and petroleum products. Meanwhile, it imported smartphones, laptops, batteries, toys, and telecom gear from China.
American companies also exported aircraft engines, integrated circuits, and medical supplies. These trade flows reflect deep interdependence, despite the political friction.
Both sides are expected to claim victory after the deal. Critics suggest that the US softened its earlier tough stance. Still, the lowered tariffs provide breathing room for businesses on both sides.
If negotiations fail after 90 days, some tariffs could return. Even then, they would stay below earlier peaks—54% for US tariffs and 34% for China’s—thanks to recent policy reversals.
This truce may not end the trade war, but it offers hope for better cooperation. The next few months will decide whether this agreement leads to lasting peace or just another pause in a bitter rivalry.
