A new negotiation channel led by US Treasury Secretary Scott Bessent and China’s vice premier He Lifeng has been established, signalling a more structured attempt to resolve longstanding trade issues.
US and China trade relations have once again taken a wild swing, as the two powerhouses have agreed to significantly scale back tariffs for 90 days as part of renewed trade negotiations that took place during the weekend of May 10 in Geneva. This marked the most substantial de-escalation in trade hostilities since the Trump administration reintroduced sweeping tariffs earlier this year.
The negotiations have concluded a temporary slashing of tariffs on each other’s goods by about 115%. The US will drop its tariffs on Chinese imports from 145% to 30%, maintaining just a 20% levy that is tied to fentanyl-related concerns, as well as a 10% universal baseline. In return, China has agreed to cut its retaliatory tariffs on US goods from 125% to a similar baseline of 10%.
