The world’s two largest economies just hit pause on their tariff slugfest. On May 12, 2025, the US and China announced a 90-day agreement to dramatically reduce the levies that have been choking bilateral trade since April.
US tariffs on Chinese imports will drop to 30% from a punishing 145%. China’s retaliatory duties on American goods fall to 10% from 125%.
What the deal actually covers
The tariff rollback primarily targets sectors critical to both traditional technology supply chains and the broader digital economy, including electronics and semiconductors.
Beyond the tariff numbers, China has also committed to suspending certain non-tariff measures that have affected US companies in categories like defense and aerospace.
