US – China agrees to 90-day truce over trade war, tariff cuts

US and China have agreed to call for a 90-day truce in their ongoing trade war.

Both parties too have agreed to reduce the tariffs imposed on each other.

The US agreed to drop its 145% tariff rate on Chinese goods by 115 percentage points to 30%, said US Trade Representative Jamieson Greer.

China cut its levies on American imports from 125% to 10%.

China will also suspend or cancel its non-tariff countermeasures imposed on the US since April 2.

As part of its retaliatory measures against the US, Beijing had imposed export restrictions on some rare-earth minerals; placed dozens of American firms on its “unreliable entity list” and “export control list;” and launched an anti-monopoly probe into US chemical giant DuPont.

The two sides also agreed to establish “a mechanism to continue discussions about economic and trade relations,” led by Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, according to the joint statement.

“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,” both parties said in a joint statement.