Released On 12th May 2025

Big News: US and China Ease Trade Tensions — What It Means for You

In a welcome move that’s already boosting confidence around the world, the United States and China have agreed to significantly roll back tariffs on each other’s goods — at least for the next 90 days. This breakthrough follows intense negotiations between the two economic giants and signals a cooling-off in what had been an escalating trade war.

What’s Changing?

Starting May 14:

• The US will drop its tariffs on Chinese goods from a sky-high 145% down to 30%.
• China will cut its tariffs on American products from 125% to just 10%.

That’s a big difference and great news for businesses and consumers alike. Products that had become much more expensive due to these tariffs — everything from electronics to food items — could soon see price relief.

Why This Matters

For months, high tariffs have led to increased costs for businesses and higher prices for customers. By easing these taxes on imports, both sides are aiming to give their economies — and global trade — a much-needed boost. If your client's been holding off on purchases or shipments or worried about rising prices, this development could bring some relief.

What’s Next?

Both countries have also agreed to keep the conversation going. They’re setting up regular meetings, led by top trade officials from both sides, to find long-term solutions and prevent future flare-ups. These talks will rotate between the US, China, and occasionally a neutral location.

The Bottom Line

This is a positive step toward stabilising trade and reducing costs. While the agreement is temporary for now (set for 90 days), it shows that both nations are serious about finding common ground.

Stay tuned — as talks continue, we’ll keep you updated on how these changes could further impact prices, products, and your business opportunities.