US, China agree to reduce tariffs

The Government of the United States of America and the Government of the People’s Republic of China have agreed to reduce tariffs on imports and exports w.e.f May 14, 2025, for an initial period of 90 days.

That means the U.S. will temporarily lower its overall tariffs on Chinese goods from 145 percent to 30 percent while China will cut its levies on American imports from 125 percent to 10 percent, according to the joint statement.

"The parties will establish a mechanism to continue discussions about economic and trade relations," the statement added.

The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the U.S. side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

"These discussions may be conducted alternately in China and the United States, or a third country upon agreement of the Parties. As required, the two sides may conduct working-level consultations on relevant economic and trade issues," the statement added.

U.S. President Donald Trump had announced a series of measures to reduce the massive trade deficit of $1.3 billion, bring back investments to America and ensure production of goods moves to America.

Container shipping expert Lars Jensen is expecting an immediate surge of cargo from China to the U.S. due to 2 reasons.

"Reason 1: There is already a large amount of cargo ready to go as U.S. importers have been adopting a "wait-and-see" strategy over the past month and abstained from shipping cargo which is already ready.

"Reason 2: The 90-day pause expires in the middle of the usual peak season for holiday-related goods going to the US. We should therefore expect a possible pull-forward of cargo creating a shorter, sharper, peak season from basically right now."