US-China Trade Tariff Agreement 2025: A 90-Day Truce

In a significant step toward de-escalating a trade war that has shaken global markets, the United States and China announced a 90-day tariff reduction agreement on May 12, 2025, following high-stakes talks in Geneva. This temporary truce, which slashes US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%, aims to stabilize economic relations between the world’s two largest economies. Alongside this geopolitical update, we explore the cultural significance of Chinese cuisine with a traditional Mapo Tofu recipe.

A Breakthrough in Geneva

After months of escalating tensions sparked by US President Donald Trump’s aggressive tariff policies, senior officials from both nations met in Geneva to negotiate a path forward. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer described the talks with Chinese Vice Premier He Lifeng and trade negotiator Li Chenggang as “productive” and “robust.” The joint statement released on Monday confirmed a mutual commitment to reduce tariffs by 115 percentage points for 90 days, establishing a consultation mechanism to continue discussions. The New York Times reported that both sides expressed a desire to avoid economic decoupling.

[](https://www.nytimes.com/2025/05/12/business/china-us-tariffs.html)

“This move is in the interest of both countries and the global economy,” stated China’s Commerce Ministry, urging the US to correct its “unilateral tariff rises.” The agreement follows Trump’s initial imposition of 145% tariffs on Chinese imports in April 2025, met with China’s retaliatory 125% duties on US goods, which had disrupted nearly $600 billion in bilateral trade.

[](https://www.reuters.com/world/china/us-china-talks-defuse-trade-row-resume-geneva-2025-05-11/)

Geneva Trade Talks 2025: A pivotal moment in US-China economic relations. Image: Pixabay

Global Markets React

The announcement triggered a rally in financial markets. The US dollar surged 1.5% against the yen to 147.62 and 1.2% against the euro to $1.1113. US stock futures soared, with the S&P 500 futures climbing 1.2%, while Hong Kong’s benchmark index jumped 3%. European and Asian markets also saw gains, reflecting optimism about reduced trade barriers. Posts on X echoed this sentiment, with users noting the positive impact on assets like Bitcoin and Ethereum.

World Trade Organization Director-General Ngozi Okonjo-Iweala hailed the talks as a “significant step forward” that “bodes well for the future,” emphasizing their importance for vulnerable economies. The trade war had raised fears of rekindled inflation and a global downturn, with US households facing an estimated $1,300 annual tax increase due to tariffs.

[](https://taxfoundation.org/research/all/federal/trump-tariffs-trade-war/)

Historical Context: The Fentanyl Factor

An intriguing geopolitical angle to the talks was the focus on fentanyl, a synthetic opioid central to the US opioid crisis. Trump’s tariffs included a 20% levy to pressure China into curbing the export of fentanyl precursors. During the Geneva discussions, Bessent noted that Chinese officials “understood the magnitude” of the crisis, suggesting potential cooperation on this issue as part of future negotiations. This aligns with Trump’s February 2025 executive order declaring a national emergency over drug trafficking from China, highlighting the intersection of trade and public health.

[](https://www.cbsnews.com/news/us-china-talks-tariffs/)[](https://www.nytimes.com/2025/05/12/business/china-us-tariffs.html)

Celebrating Chinese Culture: Mapo Tofu Recipe

As we reflect on US-China relations, let’s celebrate Chinese culture with a beloved Sichuan dish, Mapo Tofu. Known for its bold, spicy flavors, this dish is a staple in Chinese cuisine and a perfect way to bring people together.

Ingredients (Serves 4)

• 1 lb (450g) soft tofu, cut into 1-inch cubes
• 1/2 lb (225g) ground pork or beef
• 2 tbsp Sichuan peppercorns, toasted and ground
• 2 tbsp doubanjiang (spicy fermented bean paste)
• 1 tbsp fermented black beans, rinsed and minced
• 2 cloves garlic, minced
• 1-inch piece ginger, minced
• 2 tbsp soy sauce
• 1 cup chicken broth
• 2 tsp cornstarch mixed with 2 tbsp water
• 2 green onions, chopped
• 2 tbsp vegetable oil

Instructions

1. Blanch tofu cubes in boiling water for 1 minute, then drain and set aside.
2. Heat oil in a wok over medium heat. Add ground meat and cook until browned, breaking it up with a spatula.
3. Add garlic, ginger, doubanjiang, and fermented black beans. Stir-fry for 1 minute until fragrant.
4. Stir in soy sauce, chicken broth, and ground Sichuan peppercorns. Bring to a simmer.
5. Gently add tofu cubes and simmer for 5 minutes, stirring carefully to avoid breaking the tofu.
6. Add cornstarch slurry and stir until the sauce thickens, about 1 minute.
7. Garnish with green onions and serve hot with steamed rice.

Tip: Adjust the amount of doubanjiang for desired spiciness. Pair with a cooling cucumber salad for balance.

Looking Ahead

While the 90-day tariff truce offers hope, analysts remain cautious. A return to normal trade relations may be challenging, with even a 30% US tariff potentially halving bilateral trade. The Geneva talks mark a critical first step, but sustained dialogue will be essential to address deeper issues like intellectual property theft and trade deficits. For now, the world watches as the US and China navigate this delicate economic dance.

[](https://www.theguardian.com/us-news/2025/may/11/us-china-trade-talks-geneva-intended-de-escalate-tensions-lutnick)

Explore more on Planet-Today.com for the latest in global news and cultural insights.

Author: Planet-Today.com
Via AFP

US-China trade tariffs 2025 trade war Geneva talks Mapo Tofu global economy Trump tariffs