In a significant development for global trade, the United States and China have agreed to a 90-day suspension of additional tariffs imposed on each other’s imports. The agreement, reached during bilateral talks in Geneva on May 12, 2025, is intended to ease persistent trade tensions between the world’s two largest economies.

Under the temporary truce, US goods imports from China will be subject to an additional 10% duty (in addition to a separate 20% increase announced earlier this year), after having reached a cumulative level of 145% in April. For the same ninety-day period, China's imports of goods from the US will be subject to an additional 10% duty, rather than retaliatory measures that had earlier climbed to 125%, in addition to product-specific tariffs on goods such as soybeans, maize, cotton, and pork that were announced in March.

U.S. Trade Representative Katherine Tai described the agreement as a “necessary step toward stabilizing economic relations,” while China’s Commerce Minister Wang Wentao called it a “pragmatic move to foster mutual trust.”

Global markets responded positively to the news, with Asian and U.S. stocks rising on renewed hopes for trade de-escalation. Heavily affected sectors—including agriculture, semiconductors, and automotive—welcomed the temporary relief but called for sustained diplomatic engagement.

Trade experts generally see the agreement as a short-term reprieve rather than a long-term solution. “This is a tactical retreat, not a strategic breakthrough,” said Eswar Prasad, economist at Cornell University. “Both sides are buying time, but structural issues like technology restrictions and industrial subsidies remain unresolved.”

The milling and broader agricultural industries are expected to benefit modestly from the tariff suspension. Lower import duties could ease the cost of raw materials and machinery, offering some relief to producers and consumers alike.

Still, the road to a permanent resolution remains uncertain. The truce opens a window for renewed negotiations, but major sticking points—such as intellectual property rights, market access, and national security-related trade restrictions—continue to divide the two sides. Observers warn that without meaningful progress, the suspended tariffs could return once the 90-day period ends.

n a significant development for global trade, the United States and China have agreed to a 90-day suspension of additional tariffs imposed on each other's imports. This decision follows bilateral talks held in Geneva on May 12, 2025, aiming to ease ongoing trade tensions between the world's two largest economies.

During this period, the U.S. has agreed to reduce tariffs on Chinese imports from 125% to 30%, while China will lower its tariffs on U.S. goods to 10% for the duration of the suspension. A 10% tariff imposed by the US on its imports from all other trading partners remains in place, following a 9 April presidential Executive Order announcing the temporary suspension of higher duties on imports from some countries.

For the same ninety-day period, China's imports of goods from the US will be subject to an additional 10% duty, rather than retaliatory measures that had earlier climbed to 125%, in addition to product-specific tariffs on goods such as soybeans, maize, cotton, and pork that were announced in March.

U.S. Trade Representative Katherine Tai emphasized that the truce is a "necessary step toward stabilizing economic relations," while China’s Commerce Minister Wang Wentao called it a "pragmatic move to foster mutual trust."

Global markets reacted positively, with Asian and U.S. stocks rising on the news. Industries heavily impacted by tariffs—such as agriculture, semiconductors, and automotive—expressed relief but urged further negotiations.

Trade analysts view this truce as a positive step toward stabilizing global markets. However, they caution that the underlying issues remain unresolved. The temporary nature of the agreement suggests that both nations are seeking a window to negotiate more comprehensive trade terms. Eswar Prasad, Cornell University economist: "This is a tactical retreat, not a strategic breakthrough. Both sides are buying time, but structural issues like technology restrictions and subsidies remain unresolved."

The suspension is expected to also alleviate some pressure on the agricultural sector, including the milling industry. Reduced tariffs may lead to decreased costs for raw materials and equipment, potentially benefiting producers and consumers alike.

The temporary truce sets the stage for renewed talks, though deep disagreements persist over intellectual property, market access, and national security-related trade bans. Observers warn that without substantial progress, tariffs could snap back after the 90-day period.