US & China agree to cut tariffs for 90 days, will meet to discuss trade relations

The United States (U.S.) and China issued a joint statement on May 12 announcing a 90-day suspension on part of their tariffs.

They also agreed to meet up to discuss economic and trade relations.

China will be represented by vice-premier He Lifeng, while the U.S. will be represented by secretary of treasury Scott Bessent and U.S. trade representative Jamieson Greer.

The discussions may be conducted alternately in China and the U.S., or a mutually agreed-upon third country.

Tariff suspension

The temporary tariff cuts will kick in by May 14, 2025, according to the agreement.

The U.S. will reduce its tariffs on Chinese imports from the current 145 per cent to 30 per cent, while China will cut its tariffs from 125 per cent to 10 per cent, reported the New York Times.

In the joint statement, the U.S. and China said they recognised the importance of their bilateral economic and trade relationship to both countries and the global economy.

They added that they were "reflecting on their recent discussions", and believe that continued discussions may address the concerns on both sides.

As such, they will undertake the actions "in the spirit of mutual opening, continued communication, cooperation, and mutual respect."

Background

The U.S.-China tariff war has been raging for some time.

Over the weekend, officials from the Trump administration and the Chinese governments said that they had conducted trade talks.

But no details were revealed then, according to NYT.

Previously, on Apr. 15, the White House said that China could face tariffs as high as 245 per cent.

China's foreign ministry responded by saying that it "does not want to fight these [trade and tariff] wars but is not scared of them".

It was also previously reported that U.S. president Donald Trump wanted Chinese president Xi Jinping to initiate the discussion on trade tariffs.

Trump's stance, according to White House officials, was that China had to make the first move and that the U.S. would not do so.

“China wants to make a deal. They just don’t know how quite to go about it,” Trump said on Apr. 9 at the White House.

Top image from CFR and White House