U.S. and China Extend Tariff Truce: 24% Duties Suspended for 90 Days

Diplomatic ContextThis agreement concludes months of negotiations across three stages:May 12:

Initial tariff reduction (U.S. duties from 145% → 30%; China from 125% → 10%) in Geneva

June 9–10: Framework consolidation in London

July 28–29: Final talks in Stockholm led by China’s Vice Premier He Lifeng and U.S. Treasury Secretary Scott Bessent and Trade Representative Jamison Greer

The truce aims to “inject certainty into global economic growth,” aligning with the June 5 consensus between leaders of both nations

What Comes Next?November 10 Deadline: The tariff suspension expires, with analysts noting U.S. demands for a “minimum 15% reciprocal rate” may complicate permanent agreements

Critical Negotiation Areas:Market access: U.S. seeks expanded entry into China for semiconductors and tech; China aims for eased U.S. investment barriers

Fentanyl tariffs: 20% U.S. duties on Chinese pharmaceuticals remain unresolved

Intellectual property and industrial policy: Mutual accusations of unfair subsidies require alignment

Expert Insight: Wang Yong (Peking University) emphasizes that progress hinges on the timing of Trump’s potential China visit and Republican midterm election strategies

ConclusionThis tariff thaw offers multinational enterprises a critical three-month window to optimize supply chains amid persistent trade uncertainties. While tensions over tech and industrial policy linger, the extension signals a shared intent to de-escalate friction—a relief for global markets watching the world’s largest economies.