U.S. and China Reach Agreement on Temporary Tariff Reductions

The initial trade agreement temporarily reduces tariffs, suspends recent trade measures, and establishes a framework for ongoing discussions between the United States and China.

On May 12, 2025, the United States and China issued a joint announcement outlining a set of short-term trade measures, including temporary tariff reductions and the suspension of certain recently introduced duties.

These measures will be implemented for a period of three months and are intended to facilitate trade operations between the world’s two largest economies.

A 115% tariff reduction to take effect this week

The U.S. and China have agreed to reduce the tariff rates imposed in April 2025 by 115%.  

These temporary tariff reductions are scheduled to take effect by May 14 and will last for a 90-day period.

During this time, a base 10% tariff will remain in effect. 

This rate establishes a fair baseline to promote domestic production, strengthen U.S. supply chains, and ensure that U.S. trade policy prioritizes the interests of American workers.

The U.S. to temporarily suspend April tariffs

As part of its commitment under the agreement, the U.S. will take the following actions:

• Suspend 24 percentage points of the tariffs imposed under Executive Order 14257 (April 2, 2025) for an initial period of 90 days. However, it will retain a 10% ad valorem rate on goods from China—including those from the Hong Kong and Macau Special Administrative Regions.
• Remove in full the tariffs imposed under Executive Order 14259 (April 8, 2025) and Executive Order 14266 (April 9, 2025).

China to suspend retaliatory tariffs and other trade measures

In parallel, China has committed to the following actions by May 14, 2025:

• Suspending 24 percentage points of the duties imposed under Announcement of the Customs Tariff Commission of the State Council No. 4, and retaining a 10% tariff on U.S. goods.
• Removing additional tariffs introduced under Announcements of the Customs Tariff Commission of the State Council No. 5 and No. 6.
• Withdrawing non-tariff measures implemented since April 2, such as added inspections, regulatory delays, and import restrictions.

China’s 34% retaliatory tariff announced on April 4 will also be replaced with a 10% rate for the duration of the 90-day period. 

Pre-April tariff programs to remain in full effect

Tariffs and trade enforcement actions that were already in place before April 2, 2025, are not affected by this agreement. These include:

• Section 301 tariffs on Chinese-origin goods
• Section 232 national security duties
• Emergency tariffs related to fentanyl enforcement
• Standard Most Favored Nation (MFN) rates

Importers must continue to apply these rates where applicable, as they fall outside the scope of the temporary tariff reductions.

Discussions to continue between the U.S. and China

The U.S.-China agreement establishes a mechanism to continue the discussions between the two governments.

The talks will be led from the U.S. side by Secretary of the Treasury, Scott Bessent, and U.S. Trade Representative, Jamieson Greer.

China will be represented by Vice Premier He Lifeng.  

Want to learn more? Reach out to us

At Cole International, we constantly monitor changing tariffs and regulations and offer customs and compliance consulting services to help businesses navigate these changes.

Additionally, we provide timely and efficient customs brokerage services to help U.S. importers streamline their customs clearance and other import processes. 

If you import goods from China, please reach out to one of our trade professionals to determine if your goods are eligible for these tariff reductions and discuss the impact on your business.