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Monday, May 12, 2025 • ISSUE 0133
The Latest
U.S., China Agree to Tariff Reduction
The United States and China announced a 90-day truce to their trade war on Monday, with each country agreeing to reduce reciprocal tariffs by over 100 percentage points.
The U.S. will drop its 145% tariff rate on Chinese goods to 30%, while China will lower its rate from 125% down to just 10%. The agreement arrived after a weekend of high-stakes negotiations in Switzerland.
“The consensus from both delegations this weekend is neither side wants a decoupling,” Treasury Secretary Scott Bessent said after the talks. “And what had occurred with these very high tariffs … 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.”
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