After weeks of reciprocal tariffs between the US and China, a high-level meeting in Geneva seems to have reset the trade relations. For an initial period of 90 days, tariffs on Chinese imports to the US will drop significantly from 145% to 30%, while exports from the US to China will now incur a 10% tariff rather than the previous 125%. However, certain categories of goods, including PC parts, are not included in this deal.

Along with a joint statement from both nations, the announcement was covered by Reuters. US Treasury Secretary Scott Bessent remarked, “The consensus from both delegations this weekend is neither side wants a decoupling. What had occurred with these very high tariffs was equivalent to an embargo, which neither side desires. We want trade.”

While these collective tariff reductions may ease market tensions, not all imports will benefit from this agreement. Importantly, sector-specific tariffs remain in effect for items like semiconductors, steel, and certain medicines, to continue addressing vulnerabilities in supply chains.

Reportedly, the tariff reduction will start on May 14, and initial market responses have been positive. While 90 days might appear minimal, it replicates the duration of the previous tariff cycle—prompting speculation about whether normal service will resume afterward.

Many in the tech industry are still left in the lurch, especially concerning PC components like CPUs and GPUs, which may continue to incur separate levies.