Relief for renewables? US, China reach deal for 90-day pause on tariffs

Associated Press Editors | Source: Renewable Energy World | Posted 05/13/2025

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The United States and China agreed Monday to slash their massive recent tariffs, which threatened higher costs in the U.S. energy industry, restarting stalled trade between the world’s two biggest economies and setting off a rally in global financial markets.

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The United States and China have reached a temporary agreement to reduce tariffs, which had escalated recently and threatened to increase costs in the U.S. energy sector. The deal, announced by U.S. Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent, includes a 90-day pause on tariffs, during which both nations aim to negotiate a more comprehensive resolution. The U.S. will lower its tariff on Chinese goods from 145% to 30%, while China will reduce its tariff from 125% to 10%. Despite this de-escalation, the underlying trade tensions remain unresolved, leaving businesses uncertain about the future.

The announcement has sparked a positive reaction in global financial markets, with significant gains in U.S. stock futures and oil prices. Economists have noted that while the agreement is a step back from a full-blown trade war, the high tariff rates still pose challenges for consumers and businesses. Some experts suggest that both countries are under economic pressure, which may have prompted this agreement. However, the long-term impact of the tariffs and the likelihood of a lasting resolution remain uncertain, as both sides continue to navigate their complex trade relationship.

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Source Link: https://www.renewableenergyworld.com/energy-business/policy-and-regulation/relief-for-renewables-us-china-reach-deal-for-90-day-pause-on-tariffs/

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Relief for renewables? US, China reach deal for 90-day pause on tariffs

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