The United States and China have agreed to reduce tariffs on more than $30 billion worth of goods following a summit in Geneva [1].
This agreement marks a significant attempt to stabilize bilateral trade and resolve escalating tensions over critical minerals and emerging technologies. By addressing mutual concerns over export controls and tariffs, the two largest economies aim to prevent further trade fragmentation.
The deal was finalized during the U.S.–China summit held May 10 and 11, 2025 [2]. According to reports, the significant tariff cuts will apply for a 90-day period [3].
Beyond tariffs, the two governments agreed to jointly address regulations concerning the export of rare-earth elements. The Chinese Ministry of Commerce said the parties would "jointly examine and resolve" concerns that are reasonable and legal [4].
Technological cooperation was also a primary focus of the talks. The Chinese Ministry of Foreign Affairs said it had reached an agreement with the U.S. to hold inter-governmental dialogues regarding artificial intelligence [4].
Trade in the agricultural sector remains a cornerstone of the agreement. The U.S. said that China would import approximately ¥2.7 trillion of U.S. agricultural products annually [4].
These measures are designed to expand bilateral trade while managing the strategic competition between the two nations. The focus on rare earths is particularly critical given the role of these minerals in high-tech manufacturing, and green energy transitions.
“The United States and China agreed to a 90-day significant tariff cut during the Geneva talks.”
This agreement represents a tactical pivot toward stability, prioritizing short-term economic relief and risk management over total decoupling. By combining a specific 90-day tariff window with long-term agricultural quotas and AI dialogues, both nations are creating a framework to manage friction without fully resolving their underlying systemic competition. The commitment to jointly address rare-earth exports is a critical concession, as these materials are essential for the global semiconductor and electric vehicle supply chains.
