The United States and China have agreed to a 90-day pause on their respective tariffs, announced on Monday by the Trump administration at a news conference in Geneva, Switzerland, following negotiations with China over the weekend. Both sides said they will take action by Wednesday.
During the 90-day pause, the U.S. will reduce its 145% tariff to 30% on Chinese goods, including a 10% baseline tariff and a 20% additional tariff on fentanyl-related products. China will reduce its 125% tariff to 10% on U.S. goods.
China has also agreed to suspend or remove all non-tariff measures against the U.S.
The tariff back-and-forth has fueled much uncertainty among consumers, retailers and suppliers.
This comes after Trump left China out of his April 9 pause on much of his announced reciprocal tariffs in favor of a universal, 10% rate on all other countries. Also in early April, the Trump administration raised its initial 34% tariffs on Chinese goods to 145% and China raised tariffs to 125% on U.S. goods.
“The 10% tariff continues to set a fair baseline that encourages domestic production, strengthens our supply chains and ensures that American trade policy supports American workers first, instead of undercutting them,” Trump said on Monday.
President Trump said if the U.S. and China are at a standstill after the 90-days, tariffs will go up, but he did not expect U.S. tariffs on Chinese goods to return to the 145% peak, according to the BBC.
“No, but they would go up substantially higher” than the 30% rate during the pause, he said.
Retailers that sell a variety of goods are feeling some market relief because the announced trade deal means these companies won’t have to pass on higher costs caused by tariffs to their own customers, according to the Associated Press.
For convenience stores and restaurants, these taxes on imported goods ripple through supply chains, driving up prices and squeezing profitability, according to a Paytronix report on the impact of tariffs on restaurants and c-stores in 2025. Those potential price increases span from the cost of ingredients to the logistics of getting products on shelves or plates.
As ingredient prices climb, so do wage expectations, especially in competitive labor markets, according to Paytronix. Restaurant and c-store employees facing higher living costs may push for raises, putting pressure on already tight payroll budgets.
Much of c-stores’ inventory, like produce, meats or packaged snacks, comes from abroad, especially Mexico, China and European nations, Paytronix said. This isn’t limited to food—energy prices climb too, as tariffs on foreign oil or equipment parts ripple through transportation and production.
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