US and China to suspend part of tariffs for 90 days starting May 14

China and the US have jointly announced a 90-day suspension of certain tariffs starting on May 14, following talks in Geneva between the parties. The US said it would lower its reciprocal tariff on Chinese goods to 10 percent from 125 percent, while China said it would cut its tariff on US goods to the same level.

“The parties will establish a mechanism to continue discussions about economic and trade relations,” according to the joint statement.

The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the US side will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.

US tariffs related to fentanyl and other measures will remain, according to the statement. The US and Chinese delegations met over the weekend in Geneva, Switzerland.

With the suspension, US import duties for Chinese goods fall to 30 percent from 145 percent and Chinese tariffs on US goods drop to 10 percent from 125 percent.

Bessent  expects to meet with Chinese officials again in the coming weeks to continue trade negotiations.

“I would imagine in the next few weeks we will be meeting again to get rolling on a more fulsome agreement,” Bessent told CNBC in an interview.

“What we have with the Chinese is a mechanism to avoid upward tariff pressure,” Bessent added.

The outcome of the trade talks between the US and China is better than the market expected, according to Pinpoint Asset Management’s chief economist, Zhiwei Zhang. “While this is not a final solution, it is a good starting point for the two countries to negotiate a full range of issues, including but not limited to trade,” he said. From China’s perspective, this meeting is a success, as it managed to get the tariffs down significantly without making concessions, he added.

This story appeared originally in our sister publication Shoe Intelligence.