US and China Starts Tariffs Pause for 90 Days in Trade War Ceasefire

The United States and China will suspend high tariffs on each other’s goods for 90 days starting May 14, 2025, following a trade war that disrupted global markets. The agreement, reached in Geneva, reduces US tariffs on Chinese goods to 30% and China’s to 10%, down from over 100%. US President Donald Trump hailed the deal as a step toward opening China’s economy to US businesses. However, tensions persist, particularly over fentanyl-related tariffs, and analysts warn of potential re-escalation after the 90-day period. Both nations face economic challenges, with markets rallying but uncertainty lingering.

Tariffs Pause

The US-China trade war began in 2018 under President Donald Trump, driven by concerns over trade imbalances, intellectual property theft, and China’s market access restrictions. The US imposed tariffs on billions of dollars in Chinese goods, targeting sectors like technology and manufacturing, with rates escalating to 25% or higher on some products. China retaliated with tariffs on US goods, including agriculture and industrial products, disrupting global supply chains and markets. By 2020, a Phase One trade deal was signed, easing some tensions with China agreeing to purchase more US goods, but core issues like subsidies and tech restrictions remained unresolved.

Real ceasefire?

Negotiations have since been intermittent, with both sides maintaining high tariffs—some US tariffs on Chinese imports reached 145% by 2025, while China’s hit over 100%. The trade war has impacted both economies, with US businesses facing higher costs and China grappling with export declines amid a property crisis. Talks in Geneva in May 2025 led to a 90-day tariff suspension, reducing US tariffs to 30% and China’s to 10%, aiming to de-escalate tensions. However, issues like fentanyl exports and structural economic differences continue to fuel uncertainty, with analysts warning of potential re-escalation post-truce.

Business News