China and the US Lower Tariffs After Geneva Talks: What It Means for Global Trade
https://mrpo.pk/how-tariffs-are-changing-the-world/
U.S. Trade Representative Jamieson Greer, left, and U.S. Secretary of the Treasury Scott Bessent take part in a press conference after two days of closed-door discussions on trade between the United States and China, in Geneva, Switzerland, Monday, May 12, 2025. (Jean-Christophe Bott/Keystone via AP)
The United States and China agreed Monday to slash their massive recent tariffs, restarting stalled trade between the world’s two biggest economies and setting off a rally in global financial markets.
But the de-escalation in President Donald Trump’s trade wars did nothing to resolve underlying differences between Beijing and Washington. The deal lasts 90 days, creating time for U.S. and Chinese negotiators to reach a more substantive agreement. But the pause also leaves tariffs higher than before Trump started ramping them up last month. And businesses and investors must contend with uncertainty about whether the truce will last. https://www.kron4.com/news/politics/ap-politics/ap-us-trade-representative-greer-says-us-and-china-to-roll-back-most-tariffs/
U.S. Trade Representative Jamieson Greer said the U.S. agreed to drop the 145% tax Trump imposed last month to 30%. China agreed to lower its tariff rate on U.S. goods to 10% from 125%.
After years of trade tension and high tariffs, China and the United States—two of the world’s largest economies—have taken a big step toward cooperation. In a historic agreement reached during recent Geneva talks, China and the US agreed to Lower Tariffs on several goods.
But what does this mean? And how are other countries involved in this global trade story?
What Are Tariffs and Why Did the US and China Start a Trade War?
Tariffs are taxes on goods coming from other countries. Back in 2018, the US began raising tariffs on many Chinese products, saying that China was trading unfairly. China then hit back with its own tariffs.
Main reasons for the trade war:
The US was buying much more from China than it was selling (called a trade imbalance).
Concerns about technology and intellectual property.
Arguments over fair business practices.
This tariff war raised prices on many products like electronics, clothes, and farm goods, and it caused headaches for businesses around the world.
Other Countries Also Suffered
This fight wasn’t just between China and the US. Several other countries were hit by high tariffs too, especially European Union (EU) nations, Canada, Mexico, and Japan.
EU countries faced tariffs on steel and aluminium. They responded by taxing US products like motorcycles and jeans.
Canada and Mexico were shocked when the US added tariffs on their metals. They hit back with taxes on ketchup, whiskey, and more.
Japan and South Korea worried about their car industries being taxed and worked hard to make deals.
The result: Trade slowed, relationships were stressed, and prices rose worldwide.
What Happened at the Geneva Talks?
In May 2025, top leaders from China and the US met in Geneva, Switzerland, with support from the World Trade Organisation (WTO).
After several days of talks, both sides agreed to:
Reduce tariffs on many goods, including electronics, farm products, and machinery.
Make trade smoother and more open.
Keep talking to avoid future tariff wars.
This agreement could help fix a lot of the damage done in the past few years.
Why This Agreement Matters
This new deal is good news for almost everyone:
Cheaper goods: With lower tariffs, prices on items like phones, toys, and clothing could drop.
More trade: Businesses can sell more to each other, helping both economies grow.
Global impact: When the two largest economies cooperate, the whole world benefits from better market stability.
But There Are Still Challenges
While this agreement is a step forward, some issues remain:
Not all tariffs are gone—some are just reduced.
There’s still tension over technology and other issues.
Trust is still low, and both sides will need to follow through on promises.
Conclusion: A New Chapter in Trade
The Geneva agreement between China and the US is a hopeful sign for world trade. By lowering tariffs and agreeing to work together, both countries are moving away from conflict and toward cooperation.
If they stay on this path, it could mean better prices, more jobs, and a stronger global economy.
Let’s hope this is just the beginning.
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