Rodney Hoaeb unpacks the trade talks between the United States and China
May 13, 2025
The United States and China have struck a major deal to reduce import tariffs, easing trade war tensions between the world’s largest economies. The conflict has impacted global markets, including the UK.
Under the deal, both sides will cancel some tariffs and suspend others for 90 days, until 14 May. The US will lower tariffs on Chinese goods from 145% to 30%, while China will cut tariffs on selected US imports from 125% to 10%.
China also agreed to drop non-tariff retaliatory measures, including export restrictions on critical minerals imposed after earlier tensions triggered by former president Donald Trump.
However, the US is keeping a 20% tariff to pressure China to tackle illegal fentanyl trade.
The agreement offers a temporary truce, raising hopes for a longer-term resolution.
To unpack this is international trade expert Rodney Hoaeb.
