Trump tariffs: US & China agree to 90 day pause | LiveNOW from FOX

On May 12, 2025, the United States and China announced a 90-day pause in their escalating trade war, agreeing to significantly reduce tariffs on each other's goods. This temporary truce aims to provide relief to businesses and consumers while allowing time for further negotiations on a comprehensive trade agreement.

Key Details of the Agreement:

Tariff Reductions: The U.S. agreed to lower its tariffs on Chinese goods from 145% to 30%, while China reduced its tariffs on U.S. imports from 125% to 10%.

Scope of Reductions: China's Commerce Ministry stated that the two sides agreed to cancel 91% of tariffs on each other's goods and suspend another 24% for the 90-day period, totaling a 115 percentage point reduction.
LiveNOW

Ongoing Negotiations: U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent emphasized that this pause is intended to facilitate continued discussions to resolve underlying trade disputes.
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Economic Impact:

Despite the tariff reductions, experts caution that U.S. consumers may still face higher prices due to persistent supply chain disruptions. Retailers like Walmart have indicated that prices may continue to rise in the near term due to ongoing uncertainties and logistical challenges.
Business Insider

Strategic Considerations:

Analysts view the 90-day pause as a tactical move rather than a fundamental shift in policy. Rabobank global strategist Michael Every noted that former President Donald Trump is unlikely to retreat from his hardline stance, as the tariffs are integral to his broader geopolitical strategy aimed at decoupling the U.S. from China.

For a more detailed discussion, you can watch the full segment on LiveNOW from FOX:

Sources