Breakthroughs have been made in the high-level economic and trade talks between China and the United States: 91% of tariffs have been lifted, 24% have been suspended, and the consultation mechanism has been officially established

Geneva, May 12, 2025- After years of trade frictions and repeated games, the economic and trade relations between China and the United States have ushered in a historic turning point. On May 10-11, the high-level economic and trade talks between China and the United States were held in Geneva, Switzerland. Both sides reached important consensus on tariff reductions, adjustments to non-tariff measures, and future consultation mechanisms. The Joint Statement of the Geneva Economic and Trade Talks between China and the United States, released on May 12th, shows that the two countries will gradually cancel 91% of the mutually imposed tariffs and suspend the implementation of 24% tariffs. At the same time, a normalized economic and trade consultation mechanism will be established to inject a shot in the arm for global supply chain stability and world economic recovery.

Outcome of the talks: Breakthrough tariff reductions and institutionalized negotiations

According to the joint statement, both China and the United States have committed to implementing the following measures by May 14, 2025:

On the US side:

Amend Executive Order No. 14257 of April 2, 2025, which states that 24% of the tariffs imposed on China will be temporarily suspended for 90 days, while retaining a 10% tariff;

Completely cancel the tariffs imposed based on Executive Orders 14259 and 14266 (accounting for 91% of the total tariffs imposed on China).

On the Chinese side:

Synchronize the adjustment of the Tax Commission Announcement No. 4 of 2025, suspend 24% of the tariffs imposed on the United States and Canada, retain 10%, and cancel the tariff measures in Announcement No. 5 and No. 6;

Suspend or cancel non-tariff countermeasures against the United States starting from April 2, 2025, including export control lists and investment restrictions.

After this adjustment, the scale of goods affected by the imposition of tariffs in bilateral trade between China and the United States will be significantly reduced to 10% of the original level, involving key areas such as electronic equipment, machinery manufacturing, and agricultural products. In addition, both sides agreed to establish a "China US Economic and Trade Consultation Mechanism", with Vice Premier He Lifeng as the Chinese leader and Treasury Secretary Scott Besant and Trade Representative Jamison Greer as the US representatives. The consultations will be held regularly between China and the United States or in third countries, and working level dialogues can be initiated as needed.