---
title: "Tariffs slashed, great news to celebrate!On May 12, the results of the US-China trade negotiations i"
description: "Tariffs slashed, great news to celebrate!On May 12, the results of the US-China trade negotiations in Geneva were announced today: significant tariff reductions!Original news quote:Foreign media repor"
type: "topic"
locale: "en"
url: "https://longbridge.com/en/topics/29528910.md"
published_at: "2025-05-12T08:37:41.000Z"
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Tariffs slashed, great news to celebrate!On May 12, the results of the US-China trade negotiations i

Tariffs slashed, great news to celebrate!

On May 12, the results of the US-China trade negotiations in Geneva were announced today: significant tariff reductions!

Original news quote:

Foreign media reported that the US reduced tariffs on China from 145% to 30%, with another 24% temporarily suspended for 90 days. China reduced tariffs on the US from 125% to 10%, with another 24% temporarily suspended for 90 days.

However, Chinese media stated that in the reciprocal tariffs, the US cut to 10%, China cut to 10%, and both sides temporarily suspended another 24%.

**Contradictory? How to understand?**

Note that this is not contradictory. After Trump took office, the tariffs imposed on us were divided into multiple rounds:

a. February this year: Initially, using fentanyl as an excuse, a 10% tariff was imposed on Chinese exports to the US.

b. By March, another 10% was added, bringing the cumulative tariff rate to 20%.

This was the 20% tariff Trump imposed separately on China using fentanyl as an excuse before universally imposing "reciprocal tariffs" on global trade partners. Dolphin Research here briefly refers to it as the **"fentanyl tariffs."**

Then, in this wave of uniform global trade war, **reciprocal tariffs** were first imposed on China:

April 2: A 34% tariff was imposed on China (the one allegedly exported with one click in Excel)—bringing it to 54%.

April 8: Both sides retaliated, and the US added an additional 50% tariff, bringing the **reciprocal tariff** portion to 84% and the total tariff to 104%.

April 9: Escalation continued, with an additional 41% added to the **reciprocal tariff** on top of the 84%, bringing it to 125%. Combined with the fentanyl tariffs, the total reached 145%.

**What is the actual negotiation result?**

The current negotiation result is:

a. US to China: 1) **Reciprocal tariff portion**: The 40% and 50% retaliatory tariffs added on April 8 and 9 are completely canceled. Of the 34% tariff exported with one click on April 2, 10% remains, and 24% is temporarily suspended for 90 days to leave room for negotiation. **2) Fentanyl portion**: The full 20% remains.

b. China to the US: Since it’s mainly reciprocal tariffs, China’s response is a one-to-one replication of the US’s actions. China has no other substantive universal tariffs on the US.

The final temporary result is, counting from Trump’s second term, the US imposes 30% + 24% (suspended) on China, and China imposes 10% + 24% (suspended) on the US.

**How to interpret?**

Clearly positive: With overall tax rates kept relatively low, the key is the 90-day suspension period. This is undoubtedly great news for global markets.

Of course, there will be ongoing tug-of-war, but in today’s globalized division of labor: rare earths vs. semiconductors, both sides still have cards to play.

The capital market will definitely celebrate with a rally. $Vista GLD(VGZ.US) $HSTECH ETF(03032.HK)

### Related Stocks

- [VGZ.US - Vista GLD](https://longbridge.com/en/quote/VGZ.US.md)
- [03032.HK - HSTECH ETF](https://longbridge.com/en/quote/03032.HK.md)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.