US and China agree to cut tariffs for 90 Days as Trump admin rolls back on trade war

The US and China have agreed to reduce tariffs on each other's goods for 90 days and resume trade negotiations as President Trump's administration rolls back on its trade war. 

US levies on Chinese products will drop to 30% from Wednesday, May 14th, while China's tariffs on US goods will fall to 10%.

President Trump claimed a "total reset with China" following the tariff reduction deal, expressing optimism about future relations and stating he doesn't expect tariffs to return to 145%. It’s unclear exactly what a future trade deal might look like and if the trade war between the two countries will resume, however.

It’s important to note that the reduction applies to the so-called "reciprocal" tariffs between the US and China, while the "fentanyl" tariffs, which target goods related to the opioid crisis, remain in place.

Tariff on films

Earlier this month, the Trump Administration said it is considering implementing a 100% tariff on films made outside the US, with the president citing foreign incentives that attract US filmmakers as a "national security threat." 

He directed the Department of Commerce and the United States Trade Representative to begin the process of imposing this tariff on all foreign-produced movies entering the country.

Elsewhere in March, Apple airlifted nearly $2 billion worth of iPhones from suppliers in India to the US, aiming to avoid the impending tariffs imposed by the Trump administration. 

This marked a significant increase in shipments, with 600 tonnes of devices, including iPhone 13, 14, 16, and 16e models, transported by air from Foxconn and Tata Electronics. 

Trump’s tariffs have had a negative impact on global economic markets since they were first announced. This has also affected games companies, particularly hardware manufacturers, with Nintendo delaying Switch 2 preorders in North America amid the fallout.