US to Cut 91 Percent of Tariffs China Matches Move in Landmark Geneva Deal

In a major breakthrough, China and the United States jointly announced on May 12 a significant rollback of punitive tariffs, following high-level trade talks held in Geneva from May 10 to 11. The discussions, led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Bessent, and Trade Representative Greer, mark the first major de-escalation of trade tensions in 2025, offering hope for global economic stability.

The joint statement, released at 9:00 a.m. local time, reflects a shared understanding of the critical role bilateral trade plays not only for the two countries but also for global economic health. The two sides agreed to cancel 91% of each other’s additional tariffs, imposed during recent rounds of retaliatory escalation. The U.S. will also pause 24% of its remaining tariffs for 90 days, while China will suspend equivalent countermeasures. The remaining 10% of tariffs on both sides will temporarily remain in place.

This agreement comes in the wake of multiple tariff hikes by the U.S. since April, when so-called “reciprocal tariffs” were unilaterally introduced and escalated from 34% to 84%, then to 125%. China responded with proportionate countermeasures, triggering a spiral that threatened to destabilize international trade norms.

Both nations have now committed to a framework for ongoing trade dialogue, establishing a bilateral consultation mechanism. Future negotiations will alternate between locations in China, the U.S., and potentially third countries, with regular or ad hoc meetings depending on developments. Working-level consultations on specific issues will be organized when needed.

This substantial easing of trade barriers is being seen as a mutually beneficial compromise that could relieve pressure on businesses and consumers. Chinese officials underscored that this progress lays the groundwork for continued dialogue, reduced friction, and stronger cooperation. The Ministry of Commerce emphasized that the results reflect equal-footed negotiation and pragmatic coordination.

The Chinese Foreign Ministry expressed cautious optimism, calling the outcome a constructive step and urging the U.S. to fully eliminate all unjustified tariff measures going forward. As trade frictions ease, both sides are expected to foster more stable and sustainable economic ties, injecting greater certainty into global supply chains.