The United States and China reached an agreement for a temporary suspension of tariffs, effective May 14, 2025. This marks a significant shift in economic relations between the world’s two largest economies. The agreement, which will last 90 days, aims to stabilize global markets amid existing tensions.
The US 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 on these crucial economic issues.
This suspension will provide temporary relief for industries reliant on both U.S. and Chinese goods. Experts expect this to stabilize supply chain disruptions currently facing the global market. Financial, political, and trade experts acknowledge that this agreement’s effect on ongoing economic diplomacy is significant. While businesses anticipate some positive and negative shifts due to the retained 10% tariffs, which continue to guide competitive positioning.
Secretary of the Treasury, U.S. Government, Scott Bessent, highlighted: ‘This new mechanism will allow for continued dialogue and collaboration between our nations on critical economic issues’. The agreement represents a temporary framework for future negotiations as historical data shows similar temporary suspensions have led to varying outcomes in regulatory stances and economic policies.