Trade

U.S. and China reach 90-day tariff truce

Andrew Lovseth By Andrew Lovseth

May 19, 2025

The U.S. and China have agreed to temporarily reduce tariffs in a move aimed at defusing a costly trade war that had brought cross-Pacific commerce to a near standstill.

The White House cut tariffs on Chinese imports from 145% to 30%, while China reduced its duties on U.S. goods from 125% to 10%. The rollback, effective for 90 days, comes as both countries signal a desire to restart stalled trade and avoid further economic fallout.

For consumers, the truce may slow price increases and help stabilize supply chains that have been under strain. At the ports of Seattle and Tacoma, which had seen blank sailings and reduced trucking activity, officials say it may take weeks for the rebound to register, and warn that volatility could persist.

Talks now shift to a broader agreement that could include increased Chinese purchases of U.S. products, including agricultural goods and manufactured equipment. U.S. officials also signaled they want stronger commitments from Beijing on curbing the export of fentanyl precursors and enforcing intellectual property protections. However, no formal benchmarks or enforcement mechanisms have yet been outlined.

The White House described the rollback as a negotiating tactic, not a concession, and warned that tariffs could climb again if no deal is reached by the end of the 90-day window. Trade observers say the outcome may hinge on whether both sides can formalize a framework to address long-running disputes over industrial subsidies, market access, and overcapacity in key sectors like steel and semiconductors.

Despite the reprieve, economists note that tariff rates remain far above pre-2025 levels and continue to inject risk into global supply chains. With no binding treaty in place, the stability of U.S.-China trade relations remains uncertain.