2025, May 12th Breaking: China and the U.S. Eliminate 91% of Tariffs, Suspend 24% Tariffs!
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Ministry of Commerce Releases Joint Statement on China-U.S. Geneva Talks
At 15:00 on May 12, the Ministry of Commerce of China issued the"Joint Statement of the China-U.S. Geneva Economic and Trade Talks", announcing significant tariff adjustments between the two nations.
Key Terms of the Joint Statement
Mutual Tariff Adjustments:
24% reciprocal tariffsimposed by both sides will besuspended for an initial 90-day period, while retaining a10% tariffon the relevant goods.
The U.S. will cancel the tariffs imposed via Executive Orders 14259 (April 8, 2025) and 14266 (April 9, 2025), totaling91% of recently increased tariffs.
China will symmetrically revoke its countermeasures, including canceling tariffs set by Tariff Commission Notices 2025 No. 5 and No. 6.
So here is the total tax for importing ebike from China to the US
145-115%+25%+4.7=59.7 ％
Mechanism for Continuous Dialogue:
A bilateral consultation mechanism will be established, with talks held in China, the U.S., or a third country by mutual agreement.
Chinese representatives: Vice Premier He Lifeng
U.S. representatives: Treasury Secretary Scott Bessent and U.S. Trade Representative Jamison Greer
Background & Context
Since April 2025, the U.S. had unilaterally escalated "reciprocal tariffs" on Chinese goods, raising rates from an initial 34% to as high as 125%, prompting China’s legitimate countermeasures. The joint statement marks a pivotal step toward resolving disputes through equal dialogue, ending the spiral of tariff hikes.
Notable Omissions & Timeframe:
The 20% fentanyl-related tariffs and the U.S. 301 investigation into China’s maritime, logistics, and shipbuilding sectors arenot addressedin the agreement.
The 90-day tariff suspension creates a "truce window" for businesses to adjust supply chains and allows room for future negotiations.
Impact & Outlook
While the agreement provides short-term relief for bilateral trade, structural issues like tech decoupling and industrial chain restructuring remain unresolved. Foreign trade enterprises are advised to leverage the 90-day buffer to accelerate global supply chain diversification.
This breakthrough signals economic reality driving pragmatic compromises, yet long-term cooperation hinges on addressing fundamental divergences.
