May 2025

After months of increasing tension in the trade relationship between the United States and China, we saw a break toward correcting these issues this weekend. Treasury Secretary Scott Bessent met with Chinese Vice Premier He Lifeng in Geneva, Switzerland, in the hopes of defusing these rising tensions. As you may very well know, since the February 1 announcement of tariffs by the Trump administration related to fentanyl targeting Canada, Mexico, and China, trade barriers and levies between the world’s two largest economies have continued to escalate.

This latest meeting resulted in a notable breakthrough: a 90-day suspension of the most recent tariff increases. The United States will reduce tariffs on a wide range of Chinese imports, from rates as high as 145 percent down to approximately 30 percent. In return, China has agreed to lower its retaliatory tariffs on American goods, some of which had reached 125 percent, to an average of 10 percent.

While this is a temporary measure, it signals a critical shift in tone between the U.S. and China. Both parties expressed a shared interest in avoiding long-term economic decoupling and emphasized the importance of stabilizing trade flows. For U.S. importers and exporters who have been caught in the crossfire of policy swings, this easing may offer short-term relief and a path toward more balanced negotiations.

Still, uncertainties remain. With the 90-day window now open, companies are advised to monitor developments closely and work with their trade partners to assess risks, adjust sourcing strategies, and prepare for possible tariff reimplementation if talks falter.

We will continue to track updates and provide guidance as the U.S.-China discussions unfold.