On May 11, 2025, the United States and China concluded their trade negotiations in Geneva, Switzerland. Both countries agreed to make certain “beneficial economic” commitments to deescalate the trade war, the most important being the reduction of tariffs by 115%. As a result, beginning May 14, 2025, here’s what you can expect to change:
United States
- The U.S. will remove the 84% reciprocal tariffs imposed on products of China entering the U.S. pursuant to the executive orders issued on April 8 and April 9, and it will keep a baseline tariff of 10% for 90 days thus modifying the initially introduced duty rate of 34% (reciprocal tariffs).
- The U.S. will maintain all previously introduced tariffs against products from China, namely, the 20% tariffs pursuant to the International Emergency Economic Powers Act (IEEPA) and the 25% tariffs pursuant to Section 301 and Section 232, respectively. These, if applicable, will be in addition to the overall 30% duty rate.
China
- China will also modify its additional duty rates on U.S. products by maintaining the duty rate of 10% for 90 days on articles that were subject to its retaliatory actions announced on April 4, 2025.
- China “will suspend or remove non-tariff countermeasures” against the U.S. These are measures China took to restrict the export of rare earth minerals as well as sanctions against certain U.S. companies.
- China will maintain tariffs on U.S. agricultural products introduced in retaliation to the U.S. IEEPA tariffs.
Both countries have agreed to establish a formal mechanism to ensure the continuation of trade and economic discussions.
While some questions remain, further guidance from U.S. Customs and Border Protection is anticipated to offer additional clarity. Our Supply Chain Industry Group is actively monitoring the situation and will continue to keep our clients and the broader business community informed as new information becomes available. Please contact Homayune Ghaussi, Laura You, Adam Bruski or Aida Dismondy for more information.
