GENEVA, 12th May, 2025 (WAM) -- US Treasury Secretary Scott Bessent announced Monday in Geneva that the United States and China have reached an agreement to reduce tariffs by 115 percent, bringing them down to 10 percent. The agreement pertains to reciprocal tariffs imposed in April.

Speaking to the media after trade talks in Geneva, Bessent said the two sides had agreed on a 90-day pause on measures and that tariffs would come down by over 100 percentage points to a 10 percent baseline rate.

Bessent noted that "both sides showed great respect" during their talks, and "Both countries represented their national interest very well". He added, "We both have an interest in balanced trade, the US will continue moving towards that."

The US Treasury Secretary emphasised the United States' desire for increased trade with China, contingent on greater market access for US goods. He noted that rebalancing the trade deficit-which previous administrations failed to address-remains a priority. As long as good faith prevails, he said, both parties can continue making progress.

Bessent also confirmed that China will impose a 10 percent tariff on US goods and suspend an additional 24 percent in duties for 90 days.

Speaking at the same press conference, the US Trade Representative Jamieson Greer said President Donald Trump had imposed the original tariffs on 2nd April to reduce the trade deficit, which had reached $1.2 trillion by the end of last year-a 42 percent increase over previous years. He said China's retaliatory tariffs and other measures created a de facto blockade, prompting the U.S. to raise its tariff rate to 125 percent.

Greer acknowledged that restoring communication channels damaged under the previous administration was one of the biggest challenges leading up to and during the Geneva talks. He emphasised that both sides worked constructively to rebuild trust and open the door to further dialogue.