A fragile truce

The 90-day pause lowers some duties, but fundamental tensions remain unresolved

Welcome back to What’s Happening in China, your weekly China brief.

In an unexpected move, the U.S. and PRC on Monday announced a 90-day pause on reciprocal tariffs, bringing the recent U.S. tariff rate on most PRC imports down to 30%. With this adjustment, total U.S. tariffs on China will range between 40% and 70%, while Chinese tariffs on U.S. exports will drop to 10%.

Additionally, the U.S. agreed to slash “de minimis” tariffs—exemptions from duties on small, low-value parcels shipped directly to consumers—while Beijing paused export restrictions on dual-use items for 28 American companies. In a joint statement, the two countries said they “will establish a mechanism to continue discussions about economic and trade relations.”

Commenting on Trump’s 20% fentanyl-related tariffs, Foreign Ministry spokesperson Lin Jian said: “China has made it clear more than once that fentanyl is the U.S.’s problem, not China’s. It’s the U.S.’s responsibility to solve the issue. Despite the goodwill Chi…