President Donald Trump announced Monday that China has “agreed to open up” its markets, following high-level trade talks over the weekend in Geneva, Switzerland. While details remain sparse, Trump called the development “maybe the most important thing” to emerge from the negotiations between the two economic superpowers.

Speaking at the White House before signing an executive order on drug prices, Trump noted the agreement was not yet finalized: “We have to get it papered,” he said. “But they’ve agreed to open up China.”

The agreement includes a 90-day pause on most tariffs and trade restrictions imposed by both sides. As part of the deal:

• The U.S. will reduce tariffs on Chinese goods from 145% to 30%.
• China will cut tariffs on U.S. goods from 125% to 10%.

Despite the temporary nature of the deal, Trump said tariffs would not return to 145% if a permanent agreement isn’t reached after the 90-day window—but warned they would increase “substantially.”

The U.S. will also retain a 10% reciprocal tariff and maintain 20% tariffs previously imposed in connection to China’s alleged role in the U.S. fentanyl crisis. Tariffs on specific Chinese products, including steel and aluminum, will also remain in place.

On China’s side, officials agreed to “suspend or remove” non-tariff countermeasures implemented since April 2.

The initial wave of tariffs imposed by the Trump administration earlier this year had functioned as a de facto trade embargo on one of America’s biggest suppliers.

The temporary suspension of tariffs is set to take effect on Wednesday.

Source: https://www.cnbc.com/2025/05/12/trump-china-tariffs-trade.html