Tariffs on Chinese goods entering the U.S. will drop from at least 145 percent to a base level of 30 percent for an initial 90-day period. In return, China will reduce its levies on American goods from at least 125 percent to 10 percent. The negotiations were led by Chinese Vice Premier He Lifeng, U.S. Trade Representative Jamieson Greer, and Treasury Secretary Scott Bessent.

At a press conference, Bessent emphasized that both countries share a desire for balanced trade. Greer added that progress was also made in discussions about combating fentanyl smuggling. The base U.S. tariff remains at 10 percent, in addition to a 20 percent penalty tariff introduced earlier this year in response to China’s role in fentanyl production.

Both delegations spoke positively about the outcome. Vice Premier He called the discussions candid and constructive, noting that substantial progress had been achieved. Greer said China showed real commitment and confirmed that a new consultation mechanism would be established to resolve future trade issues.

The tariff reductions are temporary, and business leaders remain cautious. Jens Eskelund, president of the European Union Chamber of Commerce in China, said that while the decision is encouraging, businesses still face uncertainty.

The U.S. is now pushing for China to increase its purchases of American goods, similar to a 2020 agreement that failed to materialize. Future trade talks may be held in either country or a neutral location. While deep structural changes remain unlikely, negotiators believe steps can be taken to improve trade relations.