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US and China Hold Trade Talks in South Korea Amid 90-Day Tariff Truce

by Team Lumida
May 15, 2025
in Macro
Reading Time: 4 mins read
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Key Takeaways:

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  • US Trade Representative Jamieson Greer and China’s chief trade negotiator Li Chenggang met in Jeju, South Korea, following a recent agreement in Switzerland to pause some tariffs for 90 days.
  • The temporary truce has provided relief to businesses impacted by the ongoing trade war, but uncertainty remains about the future of tariffs.
  • Chinese exports to the US fell 21% in April, while US imports to China declined 14%, reflecting the economic toll of the trade conflict.
  • Companies are now rushing to move goods between the two countries, anticipating potential tariff increases after the truce ends.

What Happened?

US and Chinese trade officials convened in South Korea for further discussions just days after agreeing to a 90-day suspension of some tariffs during a meeting in Switzerland. The talks, led by US Trade Representative Jamieson Greer and China’s Li Chenggang, aim to build on the temporary truce in the trade war between the world’s two largest economies.

The trade war has significantly disrupted global supply chains, with Chinese exports to the US dropping 21% in April and US imports to China falling 14%. The recent tariff pause has brought temporary relief to businesses, but uncertainty looms as companies brace for potential tariff hikes once the truce expires.


Why It Matters?

The US-China trade war has had far-reaching economic consequences, affecting not only the two countries but also global trade partners like South Korea, Japan, and Vietnam. The 90-day tariff suspension offers a window of opportunity for both sides to negotiate a longer-term resolution, but the lack of clarity on future tariffs keeps businesses on edge.

The talks in South Korea underscore the importance of maintaining dialogue to prevent further economic disruptions. However, the temporary nature of the truce means that companies must remain cautious and prepare for potential policy reversals.


What’s Next?

The outcome of the ongoing negotiations will be critical in shaping the future of US-China trade relations. Businesses should monitor developments closely, particularly any announcements regarding the extension or termination of the tariff suspension.

Additionally, the broader implications for global trade partners will depend on whether the US and China can reach a more permanent agreement. For now, companies are likely to accelerate shipments to mitigate risks associated with potential tariff increases after the 90-day truce ends.

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© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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