The United States and China have agreed to drastically roll back tariffs on each other’s goods for an initial 90-day period. The decision followed a two-day high-level meeting on economic and trade affairs, during which both sides acknowledged the importance of their bilateral economic and trade relationship and its significance to the global economy.

This represents a significant de-escalation in the trade war that escalated last month. At that time, the Trump Administration had increased its tariff on China to 145% (including the 20% tariff added to tackle fentanyl imports into the US). The PRC retaliated with 125% tariffs on US imports.

In separate press briefings, the representatives of both countries announced a series of tariff modification measures aimed at easing trade tensions between the world’s two largest economies.

Speaking in Geneva, Treasury Secretary Scott Bessent says that “both sides will move their tariffs down by 115%”, having agreed a 90-day pause.  He indicated that during the talks, “both sides showed great respect” and that “we both have an interest in balanced trade”.

Commenting on the progress made, Chinese Vice Premier He Lifeng stated, “Today’s world is undergoing changes unseen in a century. China-U.S. trade and economic relations are not only of great importance to the two countries, but also of major impact on global economic stability and development. The nature of the China-U.S. economic and trade relations is mutually beneficial and win-win. It is normal that there will be some differences and frictions between the two sides’ cooperation. The key is to follow the principle of mutual respect, peaceful coexistence, and win-win cooperation, and find ways to properly resolve issues through equal-footed dialogue and consultation so as to foster a stable, sound, and sustainable China-U.S. trade and economic relationship.”

China exports to the United States fell sharply in April after Donald Trump’s triple-digit tariffs took effect, in another sign of the damage the US president’s trade war is causing the world’s two largest economies as they prepare for de-escalation talks.

Customs data released by the General Administration of Customs of the Peoples Republic of China, on Friday 9 May 2025, indicated that outbound shipments to the US for April 2025 stood at US$33 billion, compared to US$41.8 billion for April 2024 (custom.gov.cn).  

Notably, while Chinese exports to the United States fell by 21% in April, overall exports grew by 8.1% due to a significant increase in exports to Europe (8%) and to Southeast Asia (21%).  Latin American countries have begun to benefit as China looks to diversify its sources of agricultural produce amid escalating trade tensions.

Caribbean countries to include Antigua and Barbuda, will view this latest development as a definite plus for their economic outlook in particular the cost of living, as the US is the largest source market for goods into the region, serving as the most significant transhipment point for goods from China.