- US and China agreed to a 90-day tariff rollback to ease mounting trade tensions.
- Outcome hinges on whether this truce becomes a permanent trade framework.
- Chinese-built EVs remain blocked from US under previous Trump-era trade policies.
After months of mounting trade tension, the latest meeting between U.S. and Chinese officials has produced a moment of progress. It’s not a resolution, but it’s something. In their latest round of negotiations, officials from both countries agreed to a temporary rollback of tariffs on imported goods, a 90-day pause that could mark the beginning of a broader reset, assuming it holds. And that’s a big if.
Under the terms of the agreement, the U.S. will reduce its additional tariffs on Chinese imports from 145% to 30%. In return, China will lower its tariffs on U.S. goods from 125% to 10%. These changes are scheduled to remain in effect for 90 days, giving negotiators a window to work toward a more permanent arrangement.
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What this means in practical terms is still murky, especially when it comes to the automotive sector, which remains under a blanket 25% tariff on both vehicle and parts imports, aside from a few temporary carve-outs, such as those outlined in the USMCA agreements. Yes, it’s complicated, as usual. Still, in theory, the temporary easing of trade restrictions could offer automakers a little more flexibility when it comes to sourcing Chinese-made components.
Chinese-built electric vehicles are still effectively blocked from entering the U.S. market, largely due to tariffs introduced during the first Trump administration. But there’s less clarity around vehicles built in China by U.S. brands like Buick and Lincoln. Whether those models will see a meaningful change under the new terms remains an open question.
“Today, on the heels of the brand-new deal with the United Kingdom, President Donald J. Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports,” the White House said in a statement.
While the announcement may sound good politically, the real outcome depends on what comes next. With just 90 days on the clock, the real test is whether both sides can turn this temporary pause into a lasting trade framework.