After years of tensions, Beijing and Washington reduce 91% of tariffs and boost maritime trade: a turning point in global economics
A new path based on mutual benefit
After years of trade tensions, China and the United States have taken a significant step toward stabilizing their economic relationship. From June 9 to 10, 2025, London hosted the first meeting of the China-US Economic and Trade Consultation Mechanism. The result? An agreement that slashes tariffs and marks the beginning of renewed economic cooperation.
Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent, along with top officials, emphasized the shared commitment to prioritize dialogue over confrontation.
Tariff cuts and container boom
At the heart of the deal is the mutual elimination of tariffs: the US removed 91% of its additional tariffs on Chinese goods, and China reciprocated by lifting 91% of its retaliatory tariffs on US imports. Both parties also suspended their respective 24% duties for 90 days.
The impact was immediate. According to Vizion, container bookings from China to the US jumped by 300%. The port of Yantian, a key Chinese export hub, saw daily container traffic surge by over 60%, from 120 to more than 200 containers a day by late May.
Strategic value of cooperation
As Professor Sun Taiyi told CGTN, the London meeting highlighted both nations’ strategic capabilities and helped clarify their positions. The economic ties between China and the US, he said, are not a battlefield but a space of shared advantage.
This message echoes globally: a stable relationship between the world’s two largest economies is essential to global economic recovery and growth.
A new phase or just a truce?
Chinese President Xi Jinping and US President Donald Trump had already signaled progress during a June 5 phone call. The London meeting gave form to that intent. Trump called it “a great success,” while Xi emphasized the value of mutual understanding.
China’s international trade representative Li Chenggang expressed hope that the agreement would strengthen mutual trust and pave the way for a “steady and healthy development” of the bilateral relationship.
What emerges is a new narrative based on reciprocity, openness, and shared prosperity, in contrast with the years of tariff wars and economic friction.
FAQ
1. What does the June 2025 China-US trade agreement include?
A 91% reduction in bilateral tariffs and a temporary 90-day suspension of 24% tariffs.
2. When was the meeting held?
June 9–10, 2025, in London.
3. What immediate effects did the deal produce?
A 300% increase in container bookings from China to the US.
4. Why is the port of Yantian significant?
It handles over one-quarter of China’s exports to the US and has seen a 60% spike in daily container volume.
5. Who led the delegations?
He Lifeng for China; Scott Bessent, Howard Lutnick, and Jamieson Greer for the US.
6. Does this deal replace the one made in Geneva?
No, it reinforces and expands on it.
7. How did the Xi-Trump call influence the outcome?
It laid the groundwork for the agreement signed in London.
8. What did Prof. Sun Taiyi say about the talks?
That both countries recognized the value of strategic cooperation over prolonged conflict.
9. Which sectors will benefit?
Logistics, manufacturing, agriculture, and tech.
10. Is the deal final?
It’s a major step forward, but further negotiations are expected.
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