The United States and China have reached an agreement to reduce tariffs, suspend retaliatory measures, and establish a pathway for continued trade negotiations. Under the terms of the agreement, both countries will lower tariffs by 115% while maintaining a base 10% tariff. The United States will continue to enforce other existing trade measures already in place.
Effective May 14, 2025, for an initial 90-day period, the U.S. will reduce the 34% tariff originally implemented in Executive Order 14257 to 10%. The United States will also remove the modified additional ad valorem rates of duties imposed under Executive Orders 14259 and 14266 during this period. As a result, the reciprocal tariff rate will stand at 10% during this timeframe. However, tariffs imposed under Section 301, Section 232, and the 20% IEEPA Fentanyl tariff will remain in place.
China, in turn, will also suspend its initial 34% tariff on U.S. goods for the same 90-day period and keep a 10% tariff during the pause. They will also suspend the non-tariff countermeasures imposed on the United States since April 2, 2025.
We are currently awaiting CBP's formal implementation guidelines regarding these changes.
Further details can be found below:
Joint Statement on U.S.–China Economic and Trade Meeting in Geneva
Fact Sheet: President Donald J. Trump Secures a Historic Trade Win for the United States