Payam Javan: In a significant step toward easing trade tensions, the United States and China announced a 90-day agreement on May 12 to reduce reciprocal tariffs, following negotiations in Geneva. U.S. Treasury Secretary Scott Bessent revealed that both nations will lower their tariffs substantially, with the U.S. cutting its rate by 115 percent to 30 percent and China reducing its levies by 115 percent to 10 percent, while also removing countermeasures. The deal aims to foster balanced trade, with both sides expressing commitment to addressing issues like intellectual property theft and the flow of fentanyl, which have strained bilateral relations.

The agreement comes after a heated trade war, intensified last month when the U.S. imposed a 145 percent tariff on Chinese goods, prompting China to retaliate with 125 percent duties on U.S. imports. According to U.S. Trade Representative Jamieson Greer, existing tariff measures from 2018 and other statutory authorities remain unchanged for now. Both nations also pledged to collaborate on curbing fentanyl trafficking, a key concern for the U.S. China’s Ministry of Commerce noted that high tariffs have disrupted global trade, underscoring the need for constructive dialogue. The White House confirmed that further actions to implement the agreement are expected by May 14.