Major Breakthrough in China-US Economic Relations: Core Content of Geneva Joint Statement & Strategic Implications for Exporters

On May 12, 2025, China and the United States jointly released the China-US Geneva Economic and Trade Joint Statement in Switzerland, marking the first substantive tariff adjustment agreement since the escalation of trade tensions in April 2025. For sauna equipment exporters, the following provisions demand immediate attention:

I. Core Tariff Adjustments

1. US Commitments

- Suspend the 24% ad valorem tariffs imposed under Executive Order 14257 (April 2, 2025) on Chinese goods (including Hong Kong and Macau products) for 90 days, while maintaining the base 10% tariffs

- Fully revoke the additional 91% tariffs enacted through Executive Orders 14259 (April 8) and 14266 (April 9)

2. China's Reciprocal Measures

- Suspend 24% retaliatory tariffs for 90 days with 10% base tariffs retained

- Remove 91% retaliatory tariffs under Announcements No.5 and No.6 (2025) by the Customs Tariff Commission

- Suspend non-tariff countermeasures (e.g., export license restrictions) implemented since April 2

Industry Impact: Effective US tariffs on sauna equipment will drop from peak 125% to a "10% base + 24% suspension" model. Exporters should reassess pricing strategies urgently.

II. Non-Tariff Barrier Reforms

China will:

- Relax export controls on strategic materials (e.g., potential easing of rare earth export licenses)

- Streamline customs clearance procedures for US-bound goods

Recommend coordinating with logistics partners to optimize supply chain efficiency.

III. Permanent Consultation Mechanism

A dual-track negotiation framework led by Vice Premier He Lifeng and US Treasury Secretary Scott Bassett will address:

1. Technology transfer and IP protection

2. Digital trade standards and market access

3. Critical supply chain resilience (semiconductors, rare earths)

Compliance Alert: Monitor updates on "Rules of Origin" and "Technical Compliance Requirements" to prepare documentation in advance.

IV. Strategic Opportunities & Risks

1. 90-Day Window: Prioritize backlog clearance and market share expansion during tariff suspension

2. Base Tariff Caution: Maintain flexible pricing accounting for 10% residual tariffs

3. Tech Uncertainties: US restrictions on chip exports remain – exercise caution with smart sauna equipment components

V. Global Trade Implications

WTO Director-General Ngozi Okonjo-Iweala estimates a 23% reduction in global supply chain disruption risks. North American sauna market demand is projected to surge, suggesting accelerated overseas warehouse deployment.

Data Sources: Ministry of Commerce of China, Xinhua News Agency, Global Times

Operational Note: Final implementation details subject to official announcements by May 14. Subscribe to the Customs Tariff Inquiry System for real-time updates.