Ashraf AboArafe
China and the United States jointly announced on Monday a series of tariff adjustment measures aimed at de-escalating ongoing trade tensions between the world’s two largest economies.
The announcement followed a two-day high-level meeting on economic and trade affairs, during which both sides acknowledged the vital role their bilateral trade relationship plays not only for their respective economies but also for the global economy.
In a joint statement, the two countries underscored the importance of fostering a sustainable, long-term, and mutually beneficial economic and trade relationship.
Key Measures Announced
- United States Actions:
- The U.S. will implement a 90-day suspension of 24 percentage points from the additional ad valorem duties imposed on Chinese imports—including those from the Hong Kong and Macau Special Administrative Regions—starting April 2.
- The remaining 10 percent tariff on the affected articles will remain in place during this period.
- The U.S. will remove additional tariffs announced on April 8 and 9, which had raised rates under Executive Orders 14259 and 14260 to 84 percent and 125 percent, respectively.
Ad valorem duties are taxes levied based on the assessed value of goods.
- China’s Reciprocal Measures:
- China will mirror the U.S. action by suspending 24 percentage points of the additional ad valorem duties on U.S. imports for 90 days, while maintaining a 10 percent duty during this period.
- The additional tariffs announced on April 9 and 11 under Customs Tariff Commission Announcements No. 5 and No. 6 will be removed.
- China will also suspend or lift non-tariff countermeasures imposed since April 2, 2025.
Next Steps and Ongoing Dialogue
Both countries have committed to implement these measures by May 14. Furthermore, they have agreed to establish a bilateral mechanism for ongoing discussions on trade and economic matters. These talks may be held alternately in China, the United States, or in a third country by mutual agreement.
The joint initiative marks a significant step toward stabilizing economic relations and signals a willingness on both sides to pursue constructive dialogue and practical cooperation.
