Following a weekend of negotiation, the US and China announced in a joint statement on May 12, 2025, that they will proceed with a 90-day pause on many of the tariffs and trade actions they have enacted over the past few months.
US Action Summary:
- The reciprocal tariff rate has been reduced to 10% effective May 14, 2025, for a period of 90 days (reduced from the previously imposed rates of 34% on April 2nd, which increased to 84% on April 9th, then 125% effective April 10th).
- Will retain those tariffs imposed prior to April 2nd, 2025, tariffs including:
- Section 301
- Section 232 (goods subject to section 232 are excluded from reciprocal tariffs)
- Fentanyl Related Tariffs
- Most Favored Nation
- There were no changes mentioned regarding the removal of the De Minimis provision effective May 2nd, 2025.
Chinese Action Summary:
- Removal of April 4, 2025, retaliatory tariffs.
- Suspension or removal of non-tariff countermeasures taken against the US since April 2, 2025.
- Suspension of the initial 34% tariff on the US that was announced on April 4, 2025, for 90 days while retaining 10% during the pause.
An official fact sheet covering the details of this agreement can be found here.
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