The United States and China established a trade agreement to lower their tariffs which reduced their ongoing trade conflict. The United States will reduce its Chinese import tariffs from 145% to 30% and China will decrease its US import tariffs from 125% to 10% while eliminating certain tariffs and placing others under temporary suspension until May 14. China eliminated its non-tariff trade restrictions which included critical mineral export prohibitions. The announcement from Switzerland revealed a 20% US tariff provision which will force China to address fentanyl trade issues. Treasury Secretary Scott Bessent stated that both countries want to maintain trade relations instead of pursuing decoupling. The Chinese Commerce Ministry declared this agreement as a starting point for future cooperation. The current suspended tariffs will expire but US tariffs will increase to 54% while Chinese tariffs will increase to 34%. The ongoing dialogues between the two nations seek additional progress but experts predict that US-China tensions will continue. The agreement provides market stability but businesses remain concerned about potential future market fluctuations. The 90-day pause provides retailers with temporary relief before major shopping seasons but fundamental issues regarding market access and intellectual property continue to exist.
