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US, China pause tariffs

  • On May 12 in Geneva, Washington and Beijing reached an understanding to lower their recent high tariffs for 90 days in an effort to revive paused trade relations between the two largest global economies.
  • This deal followed months of escalating tariffs initiated by Trump, who raised U.S. Combined tariffs on China to 145 percent last month, prompting retaliatory tariffs from Beijing.
  • The U.S. Will lower tariffs on Chinese goods from 145 to 30 percent, while China will cut levies on U.S. Products from 125 to 10 percent, with officials meeting for many hours at a Geneva villa.
  • U.S. Officials responsible for trade and finances highlighted that the previously imposed high tariffs were effectively a trade embargo undesired by both countries, and the resulting agreement sparked a notable surge in global market confidence.
  • The 90-day pause creates space for substantive talks, but tariffs remain elevated and uncertainty persists over whether the truce will hold or if prices will continue rising.
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L'AGEFI broke the news in on Monday, May 12, 2025.
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