In a significant development for global trade, China and the United States have issued a joint statement outlining immediate tariff suspensions and a renewed commitment to ongoing dialogue, following high-level economic and trade discussions held in Geneva.
The statement, released Monday, marks a cautious yet constructive step forward in stabilizing the strained economic relationship between the world’s two largest economies. Both sides acknowledged the critical importance of their trade relationship—not only for domestic prosperity but also for global economic stability.
According to the agreement, the United States will suspend 24 percentage points of the additional ad valorem duties on Chinese goods, including those from Hong Kong and Macau, as set forth in Executive Order 14257 issued on April 2, 2025. The remaining 10 percent tariff will remain in place for now. Additionally, the U.S. will completely remove duties introduced under Executive Orders 14259 and 14266.
In a reciprocal move, China has committed to suspending an equivalent 24 percentage points of tariffs on U.S. goods listed under its April tariff announcement. It will maintain a 10 percent duty while eliminating additional rates announced in subsequent measures. Beijing also agreed to roll back non-tariff countermeasures taken against the United States since early April.
The measures will be effective for an initial period of 90 days beginning May 14, 2025, allowing space for further negotiation and potential permanent resolution.
As part of the agreement, the two governments will establish a structured mechanism for continued discussions. China will be represented by Vice Premier He Lifeng, while the U.S. side will be led by Secretary of the Treasury Scott Bessent and United States Trade Representative Jamieson Greer. Future discussions will alternate between the two countries or take place in third-party nations by mutual consent.
The announcement signals a tentative thaw in U.S.-China economic tensions, which had escalated in recent months following a series of tit-for-tat tariffs and regulatory measures. Analysts say the Geneva meeting and resulting commitments may pave the way for a more predictable trade environment and restore investor confidence.
Global markets responded cautiously to the news, with early signs of optimism in major stock indices and commodity prices.
