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3d ago

U.S. and China Launch 90-Day Tariff Cuts Following Geneva Trade Talks

The agreement reduces U.S. tariffs on Chinese imports to 30% and Chinese duties on U.S. goods to 10%, fueling cautious optimism in global markets.

A dealing room at Hana Bank in central Seoul on May 12, 2025. (Yonhap)
A dealing room at Hana Bank in central Seoul on May 12, 2025. (Yonhap)
This photo shows a dealing room at Hana Bank in central Seoul on May 12, 2025. (Yonhap)

Overview

  • The United States and China agreed to a 90-day reciprocal tariff reduction to facilitate further trade negotiations, announced in a joint statement on May 12, 2025.
  • U.S. tariffs on Chinese imports will be reduced from 145% to 30%, while China's duties on U.S. goods will drop from 125% to 10% by May 14.
  • South Korea's KOSPI index surged over 1% on Monday in response to the trade breakthrough, reflecting optimism in export-driven economies.
  • Wall Street reacted positively, with significant gains across major indexes: the Dow Jones rose 2.81%, the S&P 500 jumped 3.26%, and the Nasdaq climbed 4.35%.
  • U.S. Treasury Secretary Scott Bessent highlighted 'substantial progress' in reducing the trade deficit, while China's delegation described the talks as 'constructive.'