Following closely watched meetings over the weekend in Geneva, Switzerland, the U.S. and China have announced an agreement to drastically reduce tariffs on each other's goods.
The White House said the agreement calls for the U.S. and China to each lower tariffs by 115 percent while retaining an additional 10 percent tariff.
The U.S. will retain tariffs imposed in response to the fentanyl national emergency, resulting in an effective tariff rate on Chinese goods of 30 percent.
In previous tit-for-tat moves, tariffs on U.S. and Chinese goods had spiked as high as 125 percent and 145 percent, respectively, which Treasury Secretary Scott Bessent had described as the "equivalent of an embargo."
The White House said the 34 percent reciprocal tariffs on U.S. and Chinese goods will be suspended for 90 days beginning Wednesday, May 14th.
Both nations also agreed to establish a mechanism to continue important discussions about trade and economics, the White House said.
In future discussions, China will be represented by Vice Premier of the State Council He Lifeng and the U.S. will be represented by Bessent and U.S. Trade Representative Jamieson Greer.
The White House described the deal as a "win for the United States," demonstrating President Donald Trump's "unparalleled expertise in securing deals that benefit the American people."