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White House says Trump has signed tariff amendment order based on agreement with China
ByAinvest
Monday, May 12, 2025 6:52 pm ET1min read
White House says Trump has signed tariff amendment order based on agreement with China
President Donald Trump has signed an amendment to the U.S. tariff policy, marking a significant de-escalation in the ongoing trade war with China. The agreement, reached after two days of negotiations in Geneva, includes a 90-day pause on most tariffs. The White House announced the deal on May 11, 2025 [2].Under the new terms, U.S. tariffs on most Chinese imports will be reduced to 30% from the current 145%, while China's tariffs will drop to 10% from the current 125%. Treasury Secretary Scott Bessent, who led the U.S. delegation, emphasized that both sides agreed to slash tariffs to avoid a decoupling of the two economies [1].
The agreement comes amidst a broader shift in U.S. trade policy. Last week, Trump announced a trade deal with the UK, the first for his administration since imposing sweeping "reciprocal" tariffs in early April. This deal focuses on boosting U.S. exports of agricultural products, including beef and ethanol [1]. Meanwhile, negotiations with the EU have taken a different tone, with the EU unveiling a list of U.S. products it will target with tariffs if trade negotiations fail [1].
The 90-day pause on tariffs is expected to provide a window for further negotiations. Trump has signaled a willingness to speak with Chinese President Xi Jinping soon, potentially at the end of the week. U.S. equity markets reacted positively to the news, with shares of megacap tech companies like Amazon (AMZN), Apple (AAPL), and Tesla (TSLA) soaring [1].
The Federal Reserve Chair Jerome Powell has noted that while sentiment has deteriorated, the tariff "shock hasn't hit yet." The pause in tariffs may provide a temporary respite, but the long-term effects of the trade war remain uncertain [1].
References:
[1] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-us-china-agree-to-slash-tariffs-in-90-day-trade-truce-191201246.html
[2] https://www.yahoo.com/news/trump-officials-reach-trade-deal-174421864.html
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