US and China Agree to 90-Day Tariff Truce Amid Ongoing Trade Tensions and Negotiations for Market Access

Listeners, welcome to China Tariff News and Tracker. Today is July 6, 2025, and the US-China trade relationship is once again making headlines with a dramatic and complex set of tariff changes and ongoing negotiations that are reshaping global commerce. After a period of steady escalation throughout the spring, the United States and China have agreed to a temporary truce. On May 12, the White House and China's Ministry of Commerce announced a deal to reduce reciprocal tariffs to 10% for 90 days, following direct negotiations in Geneva. This agreement replaced the previous 125 percent tariffs each country imposed on the other just a month earlier. However, one major caveat remains: the US continues to enforce a 20 percent “fentanyl” tariff on Chinese goods, meaning most Chinese imports are effectively still subject to a 30 percent tariff. According to a White House fact sheet, both sides agreed to suspend additional retaliation and committed to future talks on further opening market access. China, for its part, has suspended its own tariffs up to 34% on US products for the duration of the deal, also lasting 90 days. The events leading up to this truce were dramatic. In early April, President Trump raised tariffs on Chinese imports to an unprecedented 145 percent, using powers under the International Emergency Economic Powers Act. These moves were justified as actions to address trade imbalances and curb the flow of illicit fentanyl, but observers like the Peterson Institute for International Economics note that average US tariffs on Chinese goods had soared to over 50 percent, covering every single Chinese product. China responded in kind, at one point matching the US tariff hikes up to 125 percent on American exports and introducing licensing requirements that effectively halted exports of critical rare-earth elements—materials vital to high-tech manufacturing. These tit-for-tat measures fueled warnings from major US retailers and manufacturers about fast-approaching price hikes and potential product shortages for American consumers. Trump himself appeared to soften his stance later in April, signaling that tariffs could come down “substantially” but would not be eliminated. The recent 90-day reduction appears to be a direct response to those warnings and pressures, as well as a bid to stabilize a volatile economic relationship. For now, both sides have three months to negotiate a more permanent solution. If no comprehensive agreement is reached, tariffs could snap back to 34 percent or even return to the peak levels seen in April. Political observers and trade experts remain skeptical about the sustainability of the current pause, especially given the volatile backdrop of US election politics and ongoing strategic rivalry. Listeners, that’s the latest on the US-China tariff front. We’ll be back soon to track the next round of headlines and decisions. Thank you for tuning in to China Tariff News and Tracker. Don’t forget to subscribe for the This content was created in partnership and with the help of Artificial Intelligence AI.