90 Days to Talk Inside the US-China Tariff Pause: What has happened so far and what comes next?
4 Jun 20256 min read
Summary
- The U.S.-China trade war reached a peak in April 2025 with tariffs exceeding 100 percent before a breakthrough in Geneva led to a 90-day pause. Beginning May 14, both nations agreed to roll back substantial tariff hikes, with the U.S. reducing duties on Chinese goods to 10 percent and China lowering tariffs on American imports to 10 percent.
- The temporary truce has triggered a short-term surge in ocean freight as companies move inventory ahead of potential future tariffs. Despite this easing, multinationals remain focused on flexibility and risk mitigation, continuing to invest in Southeast Asian markets like Vietnam and Indonesia through cap-light strategies such as bonded warehouses and ready-built facilities.
- According to Knight Frank’s Christine Li, the China + 1 strategy is evolving into a long-term structural shift as firms diversify supply chains and real estate footprints. While the truce offers a pause, businesses expect trade tensions to persist and are aligning their operations to manage policy uncertainty and secure resilience across key markets.
The twists and turns of the US and China tariffs have recently reached a new height in April 2025 when tariffs reached a high of more than 100 percent. A two day talk between US and China in Geneva has led to US President Donald Trump announcing a 90 day pause in the escalating trade war. Beginning May 14, both countries will roll back substantial portions of their tariffs as part of a joint agreement aimed at easing tensions. The United States has pledged to suspend 24 percentage points from its recent tariff hikes and eliminate additional duties imposed earlier in April, while China agreed to mirror the reductions and lift non-tariff countermeasures. With the tariff pause in effect, what has happened so far—and what comes next? Value Chain Asia talks to Christine Li, Head of Research, APAC at Knight Frank and air cargo consulting firm, Rotate.
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