US-China 90-Day Tariff Truce: What Changed
Why in the news
Officials confirmed a deal to wind back recent tariffs and pause for 90 days while talks continue.
Key facts
- China’s Commerce Ministry: 91% of tariffs cancelled, 24% more suspended for 90 days.
- US 30% = 10% base + 20% over fentanyl concerns; China’s 10% is base only.
| Imposer | Before | After |
|---|---|---|
| US on China | 145% | 30% |
| China on US | 125% | 10% |
Why the truce
- Higher prices hurt households more than they helped producers.
- Retailers like Walmart faced inventory problems.
- US GDP shrank in Q1 2025; recession and stagflation fears grew.
Exam angle
- Stagflation: inflation with stagnation.