From the National Retail Federation on May 12, 2025:
This morning, the United States and China released a joint statement today regarding the deal on a 90-day pause that was announced yesterday to de-escalate trade tensions between the countries. Both countries have agreed to reduce retaliatory tariffs that have been in effect since the April 2 reciprocal tariff announcement. NRF issued a press releaseapplauding the agreement and encouraging continued negotiations between the countries.
The U.S. has agreed to reduce the initial “reciprocal” tariffs announced on April 2 from 34% to 10% in addition to removing the additional retaliatory tariffs that raised the rate to 125%. The initial IEEPA tariffs on border/fentanyl will remain at 20%. So tariffs on imports from China will reduce from 145% (reciprocal plus IEEPA) down to 30%. This will be in addition to other existing tariffs (MFN, Section 301, etc.). The White House has released a fact sheet on the deal.
In response, China has agreed to remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
We anticipate that U.S. Customs and Border will issue guidance later today to provide details on entry process. We will share that information as soon as it comes out.
Articles of Interest
- U.S. and China agree to slash tariffs for 90 days in major trade breakthrough, CNBC (5/12)
- Bessent sees tariff agreement as progress in ‘strategic’ decoupling with China, CNBC (5/12)
- Treasury Secretary Bessent says he’s likely to meet with China again in ‘next few weeks’ to work on bigger agreement, CNBC (5/12)
- U.S., China agree to lower most tariffs for 90 days amid trade talks, Washington Post (5/12)
- Surprise U.S.-China Trade Deal Gives Global Economy a Reprieve, WSJ (5/12)
- US and China slash tariffs as trade war cools, Politico (5/12)
- Stocks Surge After U.S. and China Cut Tariffs, NY Times (5/12)
