The US–China Reciprocal Tariff Agreement, signed on May 12, 2025, is a bilateral commercial and economic accord stipulating the temporary reduction of mutually imposed customs duties.

_{U.S. Treasury Secretary Scott Bessent (right) and U.S. Trade Representative Jamieson Greer (left) at the press conference following the Geneva negotiations, May 12, 2025 – Anadolu Agency.}

The agreement was concluded following negotiations held in Geneva, Switzerland, on May 10–11, 2025. The United States was represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, while the Chinese delegation was led by Vice Premier He Lifeng. According to the terms of the agreement, effective from May 14, 2025, both countries committed to a 90-day reduction in reciprocal tariffs: U.S. tariffs on Chinese imports were lowered from 145% to 30%, and Chinese tariffs on American goods were reduced from 125% to 10%.

Tariffs previously enacted in connection with fentanyl—amounting to an additional 20%—remained unaffected by the agreement and continued to apply. Moreover, the two parties agreed to establish a standing mechanism for ongoing consultations on trade and economic matters within the framework of the agreement.

Background of the Agreement

Customs Policies Implemented in Early 2025

In February 2025, the United States introduced a series of new tariff measures targeting goods imported from China. On February 1, a general tariff of 10% was imposed. This was followed by a 25% tariff on steel and aluminum imports on February 10, and another 25% tariff on all automobiles and auto parts on March 26.

_{A photograph of Donald Trump taken during the announcement of the new tariffs, April 2, 2025 – Anadolu Agency.}

On April 2, 2025, under a set of regulations announced as “Liberation Day,” the total tariff burden on Chinese-origin goods was raised to 54%. Further administrative decisions enacted on April 9 escalated this rate to 145%. Meanwhile, special tariffs of 20% imposed in February and March on goods related to fentanyl remained in effect and were excluded from the subsequent rollback agreement.

China’s Retaliatory Measures and Counterpolicies

In response, on April 11, 2025, the People’s Republic of China announced that it would raise its tariffs on imports from the United States to 125%. In addition to these tariff hikes, Beijing introduced export restrictions on rare earth elements and placed certain U.S.-based technology and defense companies on a blacklist. Furthermore, anti-dumping investigations were launched against American firms, including DuPont. The Chinese Ministry of Commerce stated that these countermeasures were enacted in direct response to the tariff escalations introduced by the United States after April 2.

Contraction in Trade Flows

By April 2025, the bulk of the approximately $600 billion in bilateral trade between the United States and China had come to a halt. China experienced a decline in export volumes, with industrial production in the manufacturing sector falling to its lowest level in 16 months. On the U.S. side, gross domestic product contracted in the first quarter of 2025. Both nations witnessed a deterioration in their trade balances, while the imposition of high tariffs on both sides led to disruptions in supply chains and increased price volatility.

Initiation of Negotiations and the Geneva Talks

In light of mounting economic pressures and the disruptive effects of high tariff rates, the United States and China commenced direct negotiations to seek a resolution. As part of this effort, delegations led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, convened in Geneva, Switzerland, on May 10–11, 2025. The two-day discussions were held at a private diplomatic facility in the Cologny district, operated by the Permanent Mission of Switzerland to the United Nations.

Agenda of the Talks and Key Discussion Topics

Throughout the negotiations, both parties addressed several core issues, including the scale of reciprocal tariff rates, the duration of these tariffs, the elimination of non-tariff barriers, and the establishment of a long-term framework for economic dialogue. A specific agenda item was the 20% fentanyl-related special tariffs imposed by the U.S. in February and March 2025, which were discussed on a separate track.

The parties also reviewed three key U.S. tariff measures enacted under the April 2, 2025 “Liberation Day” package and subsequent executive orders issued on April 8 and 9. The Chinese delegation, in turn, presented details of its retaliatory measures—including import tariff hikes, restrictions on the export of rare earth elements, anti-dumping investigations, and the blacklisting of certain U.S. companies—and articulated its position on the potential rollback of these measures.

Agreement Provisions and Tariff Regulations

Reciprocal Tariff Reductions

According to the joint statement released on May 12, 2025, the United States and the People’s Republic of China agreed to implement a temporary reduction in reciprocal customs duties for a 90-day period. The United States reduced its total tariff on goods imported from China from 145% to 30%, while China lowered its tariff on U.S. products from 125% to 10%.

These reductions specifically target the retaliatory tariff increases introduced after April 2, 2025. However, the 20% additional duty associated with fentanyl, enacted by the United States in February and March, remains in force and was not affected by the agreement.

Legal Adjustments and Revoked Measures

In the United States, the tariff regime was revised through three separate presidential executive orders. The additional 24% duty introduced under Executive Order 14257 was suspended, while the tariffs imposed under Executive Orders 14259 and 14266 were fully repealed. On the Chinese side, the Customs Tariff Commission of the State Council suspended the 34% additional duty set forth in Announcement No. 4/2025 and entirely revoked the measures stipulated in Announcements No. 5 and No. 6. All changes are scheduled to come into effect simultaneously on May 14, 2025.

Mechanism for Economic and Trade Consultation

Beyond the temporary tariff relief, both parties committed to establishing a permanent institutional framework for economic dialogue. The consultation mechanism will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer. Future meetings are expected to take place alternately in China, the United States, or in a third country agreed upon by both sides. The joint statement also foresees the creation of technical-level expert committees where necessary, which will be tasked with examining trade-related disputes within this framework.

Statements by International Organizations and Institutions

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), described the consensus reached between the two countries as a “positive development” and encouraged further continuation of the dialogue. In its official statement, the Chinese Ministry of Commerce emphasized that the new arrangements align with the expectations of producers and consumers in both countries and are based on the principle of mutual interest.

Various multilateral trade platforms and analytical institutions interpreted the agreement as a short-term relief measure rather than a structural solution. While acknowledging its potential to ease trade flows temporarily, these bodies underscored that the process for addressing the deeper structural issues has yet to begin.