US Treasury Secretary Bessent: Temporarily reduce tariffs on China from 34% to 10%, and raise them again if no agreement is reached after 90 days

U.S. Treasury Secretary Scott Bessent explained this morning on 5/13 how the Trump administration negotiated a 90-day tariff suspension with the Chinese delegation in Geneva, Switzerland, and initiated a subsequent structural negotiation mechanism. Bessent emphasized: "This is not a concession, but to make real adjustments and apply pressure." He also revealed more about China's economic pressure, fentanyl control, and strategies to block Chinese transshipment goods from entering the United States.

US and China Reach 90-Day Tariff Suspension Agreement, Will Raise Tariffs if Negotiations Fail

Bessent first stated:

• Both the US and China have agreed to suspend the imposition of new tariffs for the next 90 days
• Both sides have established a "Geneva mechanism" for regular consultation to address structural issues, including non-tariff barriers and strategic industry protection

The current 34% tariff on China has been reduced to 10%, but he emphasized that this is only a suspension, not a cancellation, and tariffs may be raised again if no agreement is reached within 90 days.

• This is just a buffer adjustment for short-term "counter-escalation"
• High tariffs and investment incentives for strategic industries such as steel, pharmaceuticals, and semiconductors will continue

He stated: "The United States does not want to completely decouple from China, but we cannot repeat the supply chain crisis of shortages and bottlenecks during COVID."

Will the non-increasing tariffs cool down the US economy? Treasury Secretary: Not worried, current data is strong

Bessent emphasized that the current 20% base tariff is still in place, the February-added fentanyl tax is also in effect, and the market has already adapted.

He expects the economy will not only avoid recession but become more stable due to reduced uncertainty:

"The current US economic data is stronger than expected. Reducing it to 10% will help with corporate budget planning."

Finally, Bessent revealed that a new round of Geneva negotiations will be launched in the coming weeks, starting with addressing non-tariff barriers and manufacturing policies, striving to negotiate a more comprehensive and executable long-term agreement.

(China Introduces Large-Scale Easing Measures to Stem Trade War Economic Damage)