- Trump announces a temporary 90-day tariff cut with China, reducing duties to 30%.
- China lowers tariffs on U.S. goods to 10%, suspending some non-tariff barriers.
- U.S. maintains existing 20% fentanyl-related tariffs and sector-specific duties.
President Trump’s talking about a big deal with China – at least, that’s what he’s calling it. On Monday, he claimed that China had “agreed to open up” after the two countries decided to slash most tariffs on each other’s goods. But here’s the thing: he didn’t exactly lay out the specifics. “Maybe the most important thing” to come out of the weekend trade talks in Geneva, Trump said, sounding more hopeful than certain.
A 90-Day Truce – But It’s Not Locked In
According to Trump, the tariff truce isn’t set in stone yet. “We have to get it papered,” he said from the White House before signing an executive order on drug prices. For now, the U.S. is cutting its tariffs on Chinese goods to 30%, down from a staggering 145%. Meanwhile, China’s lowering its duties on American imports to 10% from 125%.
Trump was quick to add that if the talks don’t pan out long-term, the tariffs won’t jump back to 145% – but they could “go up substantially.” Yeah, that’s not exactly reassuring.
Tariff Details and Lingering Tensions
Here’s the breakdown: the U.S. is keeping some of its existing 20% tariffs on China – those ones tied to fentanyl concerns. Plus, tariffs on steel, aluminum, and other specific goods are staying put.
China, on the other hand, is reportedly suspending or ditching its non-tariff barriers that have been in place since April 2. Those measures had pretty much created a trade embargo with the U.S., one of its biggest suppliers.
This temporary agreement is set to kick off Wednesday. And yet, with no official response from the Chinese Embassy in the U.S., it’s hard to tell how solid any of this really is. Stay tuned.
