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13 May 2025

International Economy

US lowers reciprocal tariffs on China for 90 days, paving the way for trade talks; China’s exports to US expected to rebound temporarily (Business Brief No.4156 Full Ed.)

คะแนนเฉลี่ย
  • Trade tensions between the US and China have eased after the two countries reached a preliminary trade deal in Geneva, Switzerland, on May 12, 2025. The US will reduce reciprocal tariffs on Chinese imports for a period of 90 days, down to 10 percent from the previous 125 percent. In return, China will also lower its retaliatory tariffs on US goods to 10 percent and will remove non-tariff barriers that were imposed after April 2, 2025.
  • This round of US-China negotiations has resulted in a tariff reduction that exceeds market expectations. As a result, Chinese exports to the US are expected to see at least a temporary boost.
  • The US tariff cut should alleviate short-term impacts on both businesses and consumers. However, in the medium to long term, the relatively high tariff rates are still likely to weigh upon US-China trade.

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International Economy