Well, well, well. After months of playing economic chicken, the United States and China have decided to hit the brakes—at least for now. On Monday, both countries agreed to hit “pause” on most of the sky-high tariffs they’ve been flinging at each other like dodgeballs in a middle school gym.
The news came out of Geneva, where top dogs from both sides met for two days of talks to cool off the trade war heat. In a joint statement (read: a diplomatic version of “let’s not fight in public”), they announced a 90-day de-escalation window while the real negotiations roll on.
Here’s the meat of the deal: The U.S. is dialing back its tariffs on Chinese imports from a wild 125% to a more manageable 10%. China’s doing the same—because tit for tat is the name of the game in global trade. Oh, and those sneaky non-tariff tricks Beijing pulled since April? Yeah, those are getting shelved too.
Thanks to the strength of President Trump and his trade team, China is cutting their tariffs by 115%, taking aggressive actions to stem the flow of fentanyl, and laying the groundwork to open market access to American exports.
This is a huge victory for our country. pic.twitter.com/Rk8LciFsk9
— Karoline Leavitt (@PressSec) May 12, 2025
But don’t get it twisted—President Trump isn’t going soft. That separate 20% tariff over China’s role in fueling America’s fentanyl crisis? Still locked in place. As it should be.
Despite the kumbaya vibes, neither side is pretending this is a done deal. They both called it the first step toward a “sustainable, long-term, and mutually beneficial” trade relationship. Whatever that means in international diplomat-speak. They’ve even set up a fancy new “bilateral mechanism” to keep the conversation going. China’s bringing Vice Premier He Lifeng to the table, while Treasury Secretary Scott Bessent and U.S. Trade Rep Jamieson Greer will hold it down for America.
“The Parties recognize the importance of their bilateral economic and trade relationship to both countries and the global economy,” the statement said, with all the politeness of a forced handshake at a family reunion. They also promised to keep talking “in the spirit of mutual opening, continued communication, cooperation, and mutual respect.”
Translation: We’re still not besties, but let’s keep it civil.
BREAKING 🚨 Trump’s White House just posted a statement on U.S. and China’s historic Trade deal
America’s Tariffs on CHINA:
🔴 145% -> 🟢 30%China’s Tariffs on AMERICA:
🔴 125% -> 🟢 10%
Donald Trump did the IMPOSSIBLE Again 🔥 pic.twitter.com/7XQN0kQ7xt
— MAGA Voice (@MAGAVoice) May 12, 2025
Let’s not forget how we got here. Back in April, President Trump rolled out major tariffs on Chinese imports, cranking up duties to as much as 145% on certain goods. China clapped back with its own tariffs, and the whole thing turned into a trade version of a reality show showdown—complete with drama, inflation fears, and chaos in the shipping lanes.
Monday’s deal is a truce, not a peace treaty. It’s a “let’s take a breather and talk this out” move—not a surrender. The tariff cuts are temporary, and both sides made it crystal clear: if things go south, it’s game back on.