Big time trade opponents seem to have a major meltdown after the talk that happened over the weekend. In a dramatic shift of events, the United States and China reached a breakthrough agreement to temporarily ease tariffs, signaling the first substantial progress in resolving a trade war that has rattled global markets and threatened economic stability. The move has triggered major reactions from stakeholders worldwide, ranging from cautious optimism to sharp criticism.
What are the changes in the tariffs?
Under the deal, which takes effect from May 14, both nations agreed to a 90-day pause in escalating trade measures. The US will slash tariffs on Chinese goods from a staggering 145% to 30%, while China will reduce its duties on US imports from 125% to 10%. While hailed by some as a critical first step towards de-escalation, others have questioned the depth and sustainability of the agreement.US Treasury Secretary Scott Bessent described the Geneva talks as having made “substantial progress,” though he stopped short of detailing specific concessions. He will co-lead future negotiations alongside Chinese Vice Premier He Lifeng, with both parties committing to a mechanism for ongoing discussions.
Experts on recent tariff deduction between China and US
Goldman Sachs analysts warned last week that tariffs had already begun pushing US inflation upwards, projecting a jump to 4% by year-end if tensions persisted. Retailers like Walmart and Target, previously vocal about tariff-driven cost hikes and potential product shortages, welcomed the move. Port operators and logistics firms, which had reported steep drops in Chinese imports, are hopeful the pause will restore some momentum in trade flows.
Domestic pushback and political undercurrents
According to Bloomberg, despite the agreement, hardline trade opponents in Washington expressed concerns about the lack of concrete structural commitments from Beijing, especially on issues like intellectual property and fentanyl trafficking. US Trade Representative Jamieson Greer defended the deal’s pace, noting that the rapid agreement may reflect narrower differences than previously assumed. Meanwhile, White House Press Secretary Karoline Leavitt clarified that the US concessions are contingent on reciprocal moves from China. “There will be no unilateral tariff rollbacks.” On the Chinese side, Vice Premier He Lifeng characterised the talks as “candid, in-depth, and constructive,” framing the agreement as a turning point. China’s delegation stressed the establishment of a consultation mechanism as key to restoring bilateral economic trust. Both governments have signaled that future negotiations may be hosted in either country or a neutral location. Though the truce offers temporary relief, experts warn that much depends on how both countries navigate the next 90 days.