Catenaa, Wednesday, May 154, 2025-China announced it will reduce its tariffs on US goods to 10% for an initial 90-day period, beginning today (Wednesday, May 14, 2025).
The reduction follows the imposition of higher tariffs on U.S. products in the previous month.
The Chinese Ministry of Finance stated that the tariff adjustments, which lower the previous 34% duty and cancel an additional 91% rate, are aimed at easing trade tensions between the two nations.
The ministry highlighted that the reduction in bilateral tariffs would be beneficial for producers and consumers in both countries, as well as for the global economy. This move comes amid growing concerns about trade disruptions and market uncertainty, especially with U.S. President Donald Trump’s trade policies. The pause in tariff increases provides temporary relief to global markets, which had been bracing for further escalation of the trade war.
Investors reacted positively, with stocks and the U.S. dollar seeing gains after the announcement. While the 90-day reduction is a step towards de-escalation, experts warn that uncertainties remain. Analysts suggest that although the tariff cuts are seen as a positive sign for global economic stability, both nations will need to engage in further negotiations to reach a long-term resolution.
The reduction in tariffs is expected to provide some relief to supply chains impacted by the ongoing trade war. However, many economists emphasize that the situation remains fluid, and the final impact will depend on future negotiations between the US and China.
