OAN Staff Brooke Mallory
1:21 PM – Monday, May 12, 2025
On Monday, the United States and China both announced that they had reached an agreement to suspend the majority of retaliatory tariffs that have been applied to one another since early April, when President Donald Trump unveiled his comprehensive global tariff plan and intensified his trade “war” with China.
This pause will last for 90 days.
The two largest economies in the world promised to lower tariffs in the meantime, while continuing to work on a long-term trade agreement, in a joint statement released overnight. Soon after, the stock market surged in response to the announcement of the agreement.
According to the terms of the deal, the United States will reduce its tariff rate on Chinese imports from 145% to 30%, while China has committed to lowering its tariff rate on U.S. goods from 125% to 10%.
Additionally, China has agreed to suspend or eliminate non-tariff countermeasures imposed against the United States since early last month, as outlined in a White House fact sheet detailing the agreement.
At a press conference in Geneva, Treasury Department Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer made the announcement. The announcement followed the first trade talks between the two nations since the trade war started this past weekend.
“The consensus from both delegations this weekend is neither side wants a decoupling,” Bessent said, The Associated Press reported. “And what had occurred with these very high tariff … was an embargo, the equivalent of an embargo. And neither side wants that. We do want trade.”
“We want more balanced trade. And I think that both sides are committed to achieving that,” he added.
According to the joint U.S.-China statement, He Lifeng, the vice premier of the State Council, will represent China in trade negotiations for the next three months, while Greer and Bessent will represent the United States.
“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,” the joint statement read.
A week after “Liberation Day,” Trump put a 90-day halt on “reciprocal” tariffs on other countries, which led to the imposition of the 145% tariffs on China on April 9th. The White House then announced a trade agreement with the United Kingdom on Thursday, and U.S. officials maintained that they were in ongoing negotiations with other trading partners during the 90-day pause as well.
Later on Monday, Trump referred to the agreement as a “total reset” with China and noted that it excludes tariffs that are currently in effect — like tariffs on steel, aluminum, and automobiles, as well as tariffs that could be applied to pharmaceuticals.
“The talks in Geneva were very friendly, the relationship is very good. We’re not looking to hurt China. China was being hurt very badly,” Trump stated.
Trump stated his intention to further engage in discussions with Chinese President Xi Jinping at the end of the week as well. In addition, the 47th president disclosed that he had conversed with Apple CEO Tim Cook on Monday morning following the announcement of the China deal. He announced that Apple intends to establish additional manufacturing facilities within the United States.
Demonstrating a conciliatory approach, Trump has sought to de-escalate the ongoing trade conflict with Beijing, according to Bessent, conveying optimism about the prospect of reaching a firm trade agreement with President Xi Jinping.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts