On May 14, US President Trump and the administration cut tariffs on China for 90 days “after successful negotiations over the weekend in Geneva, Switzerland,” read a White House fact sheet. To allow for a future deal, the two countries each lowered tariffs by 115% while retaining an additional 10% tariff. China will also suspend some recent non-tariff countermeasures. The US slashed reciprocal tariffs of 145% down to 30% (accounting for the 10% “baseline” duty and the 20% fentanyl-related tariffs).
Still on the table are US Section 301 tariffs which can climb to 100% for some imports. The 90-day pause with China also does not include sector-specific tariffs on cars, or on steel and aluminum. Plus, the US trade officials may still implement more sector-specific tariffs on pharmaceuticals, for example.
During the May 12 press conference, President Trump stated his team would work to “equalize” the rates of pharmaceutical drugs sold in the US, via a new executive order. Before that announcement, Indian and Pakistani leaders halted conflict after the US administration’s negotiations and threat of trade sanctions against the two countries.
Also on May 12, US President Trump mentioned upcoming negotiations between the US and the European Union (EU). While EU Trade Commissioner Maros Sefcovic said he had a "constructive call" with US Commerce Secretary Lutnick, Sweden’s trade minister commented on the US-UK trade deal: "It's far away from good for trade," said Benjamin Dousa cited by Dow Jones. "If that's what's waiting for Europe, the US can expect countermeasures from our side."
