U.S.-China Agree on Tariff Suspension for 90 Days

US-China Tariff Suspension Agreement

The United States and China agreed to a 90-day suspension of tariffs, effective May 14, 2025, signaling a shift in economic relations between both countries.

The suspension holds significant implications as it pauses previously heightened trade tensions between the world’s two largest economies, impacting global markets.

The United States removed additional tariffs initially imposed in April 2025, while China reduced its tariffs by 24 percentage points. Both countries agreed to continue dialogue through a mechanism allowing continued discussions.

The tariff pact affects markets relying on both U.S. and Chinese goods, providing temporary trade relief. Industries expect this will stabilize current supply chain disruptions.

Financial, political, and trade experts indicate the suspension affects ongoing economic diplomacy. Businesses anticipate both positive and negative shifts due to the retained 10% tariffs, which continue to guide competitive positioning.

This new mechanism will allow for continued dialogue and collaboration between our nations on critical economic issues,” said Scott Bessent, Secretary of the Treasury, U.S. Government.

This agreement, the outcome of high-level talks, sets a temporary framework for future negotiations. Historical data shows similar temporary suspensions have led to varied outcomes, influencing regulatory stances and economic policies.