U.S.-China Trade Truce 2025: Agreement to Slash Tariffs in 90-Day Deal

Intermediate Level | May 15, 2025

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A Step Toward Better Trade

The United States and China have agreed to reduce tariffs as part of a 90-day U.S.-China Trade Truce 2025. This deal was announced after high-level talks in Geneva between U.S. Treasury Secretary Scott Bessent and Chinese Vice-Premier He Lifeng. The goal is to ease tensions, boost global markets, and open the door to a more stable trade relationship.

What the U.S.-China Trade Truce 2025 Includes

The agreement reduces tariffs on a wide range of goods. Chinese tariffs on U.S. exports like soybeans and technology will drop from 125% to 10%. In exchange, the U.S. will cut duties on Chinese electronics and household goods from 145% to 30%. There’s also a reduction on Chinese shipments under $800 from 120% to 54%.

What Happens Next?

This truce offers a 90-day window for further negotiations. Officials from both nations see this as a chance to address deeper issues like intellectual property rights and market fairness. If no long-term agreement is reached, the old tariffs may return.

Why It Matters

Tariffs are like taxes on imported goods. When tariffs go up, so do prices—impacting both businesses and consumers. Lowering them can reduce costs, boost trade, and stabilize the global economy.

A Chance for Cooperation

This agreement signals hope. It shows that even during times of tension, diplomacy and structured negotiations can lead to meaningful progress. Both governments now face the challenge of turning this short-term win into a long-term partnership.

Vocabulary

Tariff (noun): A tax on imported or exported goods.
Example: The government increased tariffs on foreign steel.
Truce (noun): A temporary agreement to stop conflict.
Example: The two countries agreed to a 90-day trade truce.
Negotiation (noun): Formal discussion to reach an agreement.
Example: Negotiations between the countries took place in Geneva.
Reduce (verb): To make something smaller or lower.
Example: They agreed to reduce tariffs on several goods.
Export (noun): Goods sent to another country to be sold.
Example: U.S. exports like soybeans will benefit.
Duties (noun): Taxes on goods, especially imports.
Example: The U.S. will cut duties on electronics.
De Minimis (adjective): A term meaning too small to matter; used here for low-value imports.
Example: Items under $800 fall into the de minimis category.
Stable (adjective): Firm or steady, not likely to change.
Example: The deal aims to create a stable trade environment.
Diplomacy (noun): The practice of managing international relations.
Example: The agreement was a result of successful diplomacy.
Retaliatory (adjective): A response made in return, especially one that is harmful.
Example: The new deal puts a hold on retaliatory tariffs.

Discussion Questions (About the Article)

What are the key terms of the 90-day trade truce?
Which products are most affected by the tariff reductions?
What happens if no new deal is reached in 90 days?
How did stock markets respond to the announcement?
Why was the Geneva meeting important?

Discussion Questions (About the Topic)

How do trade wars affect your daily life or purchases?
What role does trust play in international trade deals?
Do you think lowering tariffs helps or hurts the economy?
What industries benefit the most from reduced tariffs?
How can diplomacy prevent larger economic conflicts?

Related Idiom

“Find common ground”
Meaning: To identify shared interests or goals, especially during a negotiation or conflict.
Example: U.S. and Chinese leaders found common ground by agreeing to reduce tariffs and continue trade talks.

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