US, China Mutually Agree to Cut Tariffs
At the beginning of the week, the White House announced a trade deal with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for U.S. exports.
In a Joint Statement on U.S.-China Economic and Trade Meeting in Geneva, issued on May 12, both parties affirmed the importance of the critical bilateral economic and trade relationship to both countries and the global economy.
In reaching an agreement, both the United States and China committed to lowering tariffs by 115% while retaining an additional 10% tariff effective for both sides on May 14.
The U.S. goods trade deficit with China was $295.4 billion in 2024 — the largest with any trading partner. However, U.S. Treasury Secretary Scott Bessent said that talks in Geneva had established neither side wants to decouple.
According to the White House Fact Sheet, the United States and China agreed to cut tariffs for 90 days and implement a new platform to resolve trade disputes. The U.S. will temporarily lower its tariffs on Chinese imports from 145% to 30%, while the Chinese side will drop measures from 125% to 10%.
U.S.-China Trade
U.S.-China trade has risen rapidly over the past several decades. Total trade in goods between the two nations increased from $4.8 billion in 1980 to $582.49 billion in 2024.
U.S. exports to China in 2024 were $143.55 billion. Top exports to China included chemicals ($25.58 billion), computer and electronic products ($19.98 billion), agricultural products ($18.22 billion), transportation equipment ($18.18 billion), and oil & gas ($12.34 billion).
Imports from China to the United States totaled $438.95 billion in 2024. Top imports included computer and electronic products ($122.69 billion), electrical equipment, appliances and components ($56.18 billion), miscellaneous manufactures ($48.78 billion), non-electrical machinery ($32.05 billion), and fabricated metal products ($25.02 billion).
California-China Trade
In 2024, China continued as California’s third largest export destination, with approximately $15.09 billion in exports. Of all exports, the top five export categories were computer and electronic products ($3.4 billion), non-electrical machinery ($2.77 billion), chemicals ($1.65 billion), agricultural products ($1.24 billion), and processed foods ($1.09 billion).
Imports to California from China totaled $122.06 billion in 2024, according to the U.S. Department of Commerce. The top import categories were computer and electronic products ($39.44 billion), electrical equipment ($19.49 billion), miscellaneous manufactured goods ($14.18 billion), apparel and accessories ($7.31 billion), and non-electrical machinery ($6.07 billion).
Staff Contact: Susanne T. Stirling