US, China agree to lower tariff levels for 90 days in major breakthrough | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Saturday
July 12, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
SATURDAY, JULY 12, 2025
US, China agree to lower tariff levels for 90 days in major breakthrough

Global Economy

Reuters
12 May, 2025, 01:30 pm
Last modified: 12 May, 2025, 04:45 pm

Related News

  • Trump says he will speak to Lula at some point as Brazil downplays tariff impact
  • Bangladesh's Trump tariff dilemma: Caught between a rock and a hard place?
  • Some Walmart garment orders from Bangladesh on hold due to US tariff threat
  • US customs duties top $100 billion for first time in a fiscal year
  • In addition to 35% tariff, US demands 40% local value addition for 'Made in Bangladesh' goods

US, China agree to lower tariff levels for 90 days in major breakthrough

This weekend's Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since US President Donald Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China

Reuters
12 May, 2025, 01:30 pm
Last modified: 12 May, 2025, 04:45 pm
Illustration of 3D-printed miniature model depicting Trump and the Chinese flag, April 17, 2025. Photo: REUTERS/Dado Ruvic
Illustration of 3D-printed miniature model depicting Trump and the Chinese flag, April 17, 2025. Photo: REUTERS/Dado Ruvic

Highlights:

  • US and China agreed to 90-day tariff pause
  • Reciprocal tariffs reduced by 115 percentage points
  • Stocks surged; S&P 500 and Nasdaq jumped significantly
  • Dollar strengthened; euro and yen weakened sharply
  • Economists see reduced trade war risk boosting global confidence
  • Agreement is temporary; long-term resolution still uncertain

The United States and China have agreed to temporarily slash reciprocal tariffs in a deal that surpassed expectations as the world's two biggest economies seek to end a damaging trade war that has stoked fears of recession and roiled financial markets.

The US will cut extra tariffs it imposed on Chinese imports in April this year to 30% from 145% and Chinese duties on US imports will fall to 10% from 125%, the two countries said on Monday. The new measures are effective for 90 days.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The dollar rose against other major currencies and stock markets lifted following the news, which helped allay concerns about a downturn triggered last month by US President Donald Trump's escalation of tariff measures aimed at narrowing the US trade deficit.

"Both countries represented their national interest very well," US Treasury Secretary Scott Bessent said after talks with Chinese officials in Geneva. "We both have an interest in balanced trade, the US will continue moving towards that."

Bessent was speaking alongside US Trade Representative Jamieson Greer after the weekend talks in Switzerland in which both sides had hailed progress on narrowing differences.

"The consensus from both delegations this weekend is neither side wants a decoupling," Bessent said. "And what had occurred with these very high tariffs ... was the equivalent of an embargo, and neither side wants that. We do want trade."

The Geneva meetings were the first face-to-face interactions between senior US and Chinese economic officials since Trump returned to power and launched a global tariff blitz, imposing particularly hefty duties on China.

Bessent said the deal did not include sector-specific tariffs and that the US would continue strategic rebalancing in areas including medicines, semiconductors and steel where it had identified supply chain vulnerabilities.

Since taking office in January, Trump had hiked the tariffs paid by US importers for goods from China to 145%, in addition to those he imposed on many Chinese goods during his first term and the duties levied by the Biden administration.

China hit back by putting export curbs on some rare earth elements, vital for US manufacturers of weapons and electronic consumer goods, and raising tariffs on US goods to 125%.

REPRIEVE

Shares in European companies hit hard by the escalating trade war rallied on Monday. Maersk was the biggest gainer in Europe, up more than 12% after the deal. It warned last week that container volumes between the world's top two economies had plunged due to the trade war.

Shares in luxury firms LVMH and Gucci-owner Kering  were up 7.4% and 6.7% respectively.

"This is better than I expected. I thought tariffs would be cut to somewhere around 50%," said Zhiwei Zhang, chief economist at Pinpoint Asset Management in Hong Kong.

"Obviously, this is very positive news for economies in both countries and for the global economy, and makes investors much less concerned about the damage to global supply chains in the short term," Zhang added.

The tariff dispute brought nearly $600 billion in two-way trade to a standstill, disrupting supply chains, sparking fears of stagflation and triggering some layoffs.

Wall Street stock futures climbed as the talks boosted hopes a global recession might be avoided.

Trump gave a positive reading of the talks before they had concluded, saying that the two sides had negotiated "a total reset... in a friendly, but constructive, manner."

He levied the tariffs in part after declaring a national emergency over fentanyl entering the United States, and Greer said conversations over curbing the deadly opioid were "very constructive" though on a separate track.

Top News / World+Biz

US-China Deal / Trump Tariffs / Trump Trade War / Scott Bessent

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Photo: TBS
    Mother faked bomb threat on Biman flight to stop married son from flying to Kathmandu with girlfriend: RAB
  • Caught between a rock and a hard place. Cartoon: TBS
    Bangladesh's Trump tariff dilemma: Caught between a rock and a hard place?
  • Screengrab blurred
    Mitford killing: Another arrested, case to be transferred to Speedy Trial Tribunal

MOST VIEWED

  • Representational image
    In addition to 35% tariff, US demands 40% local value addition for 'Made in Bangladesh' goods
  • Screengrab blurred
    Killers bash in head of man with rock, stomp body with perverse pleasure
  • How tender rules and a lone bidder stall a $2.5b power plant
    How tender rules and a lone bidder stall a $2.5b power plant
  • Economist Abul Barkat; Photo: Courtesy
    Economist Abul Barkat arrested in graft case
  • Photo: UNB
    WHO's Saima Wazed Putul 'placed on indefinite leave' amid corruption allegations: Health Policy Watch
  • After India's visa restriction, China's Kunming is drawing Bangladeshi patients
    After India's visa restriction, China's Kunming is drawing Bangladeshi patients

Related News

  • Trump says he will speak to Lula at some point as Brazil downplays tariff impact
  • Bangladesh's Trump tariff dilemma: Caught between a rock and a hard place?
  • Some Walmart garment orders from Bangladesh on hold due to US tariff threat
  • US customs duties top $100 billion for first time in a fiscal year
  • In addition to 35% tariff, US demands 40% local value addition for 'Made in Bangladesh' goods

Features

After India's visa restriction, China's Kunming is drawing Bangladeshi patients

After India's visa restriction, China's Kunming is drawing Bangladeshi patients

18h | Panorama
Photo: Collected/BBC

What Hitler’s tariff policy misfire can teach the modern world

1d | The Big Picture
Illustration: TBS

Behind closed doors: Why women in Bangladesh stay in abusive marriages

1d | Panorama
Purbachl’s 144-acre Sal forest is an essential part of the area’s biodiversity. Within it, 128 species of plants and 74 species of animals — many of them endangered — have been identified. Photo: Syed Zakir Hossain/TBS

A forest saved: Inside the restoration of Purbachal's last Sal grove

1d | Panorama

More Videos from TBS

Bangladesh-US tariff talks unresolved

Bangladesh-US tariff talks unresolved

1h | TBS Stories
Putul on indefinite leave after four months in 2 ACC cases

Putul on indefinite leave after four months in 2 ACC cases

1h | TBS Stories
Asian economies devastated by Trump's tariffs

Asian economies devastated by Trump's tariffs

2h | TBS World
Renowned economist Abul Barkat imprisoned

Renowned economist Abul Barkat imprisoned

16h | TBS Today
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net