US and China agree to 90-day pause on most recent tariffs – US tariffs reduced to 30%, China drops to 10%

The United States and China have announced a 90-day pause on most of their recent tariffs on each other following talks between both countries in Geneva, Switzerland last weekend.

Under the agreement, the US’ combined tariff rate on Chinese imports will be reduced from 145% to 30%. This new rate includes the 20% duty that US president Donald Trump imposed in March over China’s alleged failure to reduce the influx of synthetic opioids, including fentanyl, into the US.

As for the remaining 10%, it is the universal tariff applied to nearly all foreign imports that was announced in April. Meanwhile, China has agreed to reduce its levies on US imports to 10% from 125%. These new rates will come into effect on May 14, 2025.

The US-China deal comes hot off the heels of another deal that Trump made with the United Kingdom on May 8. While the 10% universal tariff is still in place, some steel and aluminium imported from the UK will be tax-free.

Meanwhile, the import tax on cars from the UK, which was raised by 25% on top of an existing 2.5% (to total 27.5%) has been cut to 10% for the first 100,000 vehicles imported into the US. Vehicles within this quota are still subject to the 10% universal tariff, while those brought in above that quota will be subject to 27.5%.

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