U.S. – China Tariff Pause Agreement Announced

Following negotiations in Geneva, Switzerland. The United States and China have reached a new agreement that will impact trade flows and customs duties between the two countries. The update includes a temporary tariff pause, reductions, and continued tariffs on specific imports.

Key Points of the Agreement:

• Tariff Reductions:
  Both the U.S. and China will reduce selected tariffs by 115%. A 10% baseline tariff will remain in effect during the agreement period.

• Implementation Date:
  Changes are set to take effect May 14, 2025.

China’s Actions:

• Retaliatory tariffs announced after April 4, 2025 will be removed.

• Non-tariff measures enacted after April 2, 2025 will be suspended or eliminated.

• The 34% tariff announced on April 4 will be suspended for 90 days, but a 10% tariff will still apply during this period.

United States’ Actions:

• Tariffs imposed on China on April 8 and 9, 2025 will be lifted.

• Existing tariffs from before April 2, 2025, will remain in place. These include:

• Section 301 tariffs,

• Section 232 tariffs,

• Tariffs tied to the fentanyl-related national emergency, and

• Most Favored Nation tariffs

• The U.S. 34% reciprocal tariff from April 2 will also be suspended for 90 days, with a 10% tariff continuing during this time.

What This Means for Importers/Exporters:

• Tariff adjustments may affect landed costs and sourcing decisions.

• Customs entries filed after May 14 should reflect the new tariff rates.

• Companies importing or exporting between the U.S. and China should review HTS classifications and assess potential impacts on duty obligations.

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We’ve got you covered. We understand the challenges these proposed tariffs may bring, and as your trusted partner, we will work closely with you to adjust your strategies and stay compliant throughout.

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