China and the United States issued the “Joint Statement on Sino-US Economic and Trade Talks in Geneva” on the 12th, agreeing to substantially reduce bilateral tariffs. This news injected a shot in the arm into the global market and triggered a strong reaction in the global financial market.
In the spirit of mutual openness, continuous communication, cooperation and mutual respect, continue to promote related work; The two sides promised to take the following measures before May 14, 2025:
The United States will (1) revise the ad valorem tariffs imposed on China goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) as stipulated in Executive Order No.14257 of April 2, 2025, in which 24% of the tariffs will be suspended for the initial 90 days, while retaining the remaining 10% tariffs imposed on these goods as stipulated in the Executive Order; (2) To cancel the tariff increase on these commodities according to Executive Order No.14259 of April 8, 2025 and Executive Order No.14266 of April 9, 2025.
China will (1) correspondingly revise the ad valorem tariffs on American goods stipulated in Announcement No.4 of the Tax Commission in 2025, in which 24% of the tariffs will be suspended within the initial 90 days, while retaining the remaining 10% tariffs on these goods, and canceling the tariffs imposed on these goods according to Announcement No.5 and No.6 of the Tax Commission in 2025; (2) Take necessary measures to suspend or cancel the non-tariff countermeasures against the United States from April 2, 2025.
After taking the above measures, the two sides will establish a mechanism to continue consultations on economic and trade relations. The Chinese representative is the State Council’s Deputy Prime Minister He Lifeng, and the American representative is Treasury Secretary Scott Besant and US Trade Representative jamison Greer. The consultation can be held in China, the United States, or a third country agreed by both parties. If necessary, the two sides can hold working-level consultations on relevant economic and trade issues.
From 12: 01 today (May 14, 2025), the measures of tariff increase stipulated in the Announcement of the State Council Customs Tariff Commission on Adjusting Tariff Measures on Imported Goods Originating in the United States (Announcement No.5 of the Tax Commission in 2025) and the Announcement of the State Council Customs Tariff Commission on Adjusting Tariff Measures on Imported Goods Originating in the United States (Announcement No.6 of the Tax Commission in 2025) will be stopped.
The sharp reduction of bilateral tariffs between China and the United States is in line with the expectations of producers and consumers in both countries, and is conducive to economic and trade exchanges between China and the United States and to the global economy.
The “reciprocal tariff” policy has landed, which has injected a booster into the short-term operation of cross-border sellers. The cancellation of the policy far exceeds market expectations, which not only effectively relieves the capital turnover pressure of cross-border enterprises, but also releases profit margins by reducing compliance costs, bringing triple benefits to cross-border platform ecological construction, seller business expansion and industry confidence boost.
Source: Yang Guangwang, Xinhua News Agency
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