China and US Agree to Major Tariff Reductions

From May 10 to 11, Chinese Vice Premier He Lifeng held high-level economic and trade talks with U.S. Secretary of the Treasury Scott Bessent and U.S. Trade Representative Jamieson Greer in Geneva, Switzerland. On May 12, the two sides issued a joint statement announcing substantial reductions in additional tariffs imposed on each other and the establishment of a regular economic and trade consultation mechanism.

The United States agreed to cancel 91% of the additional tariffs imposed on Chinese goods under Executive Order No. 14259 (dated April 8, 2025) and Executive Order No. 14266 (dated April 9, 2025). The United States further agreed to revise 34% of the reciprocal tariffs imposed under Executive Order No. 14257 (dated April 2, 2025), suspending 24% of those tariffs for 90 days while retaining a remaining 10% ad valorem rate.

In return, China agreed to cancel 91% of the retaliatory tariffs imposed on goods from the United States. Regarding the 34% retaliatory tariffs, China will likewise suspend 24% for 90 days and retain the remaining 10%. Additionally, China will suspend or cancel non-tariff countermeasures imposed on the United States since April 2, 2025.

Both sides pledged to complete these adjustments by May 14, covering industrial goods, consumer goods and most other products subject to additional tariffs.

As a result, the United States now imposes only a base tariff of 10% on Chinese goods — comparable to the rate applied to most countries. The average tariff rate on goods traded between China and the United States will drop from a peak of 125% down to 10%.

China’s 34% retaliatory tariffs were primarily concentrated in the agricultural sector, including nuts such as pecans, almonds, walnuts, pistachios, macadamias and hazelnuts. These products will now benefit from a 90-day suspension of 24% of the additional tariffs. Following this adjustment, temporary tariffs on nut imports will range from 25% to 60%, with the highest tariffs applied to in-shell walnuts and hazelnuts. The lowest tariffs (25%) will apply to nuts processed or preserved by other methods, including roasted almonds, hazelnuts, pistachios and pecans.

Based on current public statements, specific tariff details are provided in the following table (for reference only):

Images: Pixabay (main image), © 2025 Produce Report (body image)

This article was based on a Chinese article. Read the original article.