U.S.-China Trade Deal (May 12, 2025) – Key Points

United States Actions:

• Tariff Reduction (Executive Order 14257, April 2, 2025):
  • Suspend 24 percentage points of the additional ad valorem duty rate on Chinese goods (including Hong Kong and Macau) for 90 days.
  • Retain a 10% ad valorem duty rate, reducing the overall tariff from 145% to 30% (including pre-existing tariffs like Section 301).
• Removal of Additional Tariffs:
  • Eliminate modified ad valorem duty rates imposed by:
    • Executive Order 14259 (April 8, 2025), which raised tariffs to 84%.
    • Executive Order 14266 (April 9, 2025), which raised tariffs to 125%.
• De Minimis Adjustment:
  • Reduce ad valorem duty rate on low-value Chinese imports (under EO 14256, as modified) from 120% to 54%, retaining $100 per-postal-item duty without the planned $150 increase.
• Retention of Other Measures:
  • Maintain pre-April 2, 2025, tariffs (e.g., Section 301, Section 232, fentanyl-related) and the termination of the de minimis rule for low-value imports.

China Actions:

• Tariff Reduction (Announcement No. 4 of 2025):
  • Suspend 24 percentage points of the additional ad valorem duty rate on U.S. goods for 90 days.
  • Retain a 10% ad valorem duty rate, reducing the overall tariff from 125% to 10%.
• Removal of Additional Tariffs:
  • Eliminate modified ad valorem duty rates imposed by:
    • Announcement No. 5 of 2025 (April 9, 2025), which raised tariffs to 125%.
    • Announcement No. 6 of 2025 (April 11, 2025), which likely adjusted tariffs further (specifics unavailable).
• Suspension of Non-Tariff Countermeasures:
  • Suspend or remove non-tariff measures implemented since April 2, 2025, including:
    • Export restrictions on rare earth minerals and magnets.
    • Blacklisting of U.S. defense and tech firms on “unreliable entity” and “export control” lists.
    • Anti-dumping probe into DuPont’s China business.
  • Pre-April 2 measures (e.g., Google anti-dumping probe, prior blacklists) remain unaffected.

Ongoing Dialogue:

• Establish a China-U.S. Economic and Trade Consultation Mechanism for continued negotiations.
• Representatives:
  • China: Vice Premier He Lifeng.
  • U.S.: Treasury Secretary Scott Bessent, U.S. Trade Representative Jamieson Greer.
• Objectives:
  • Address the $1.2 trillion U.S. trade deficit with China.
  • Promote balanced trade and address national security concerns (e.g., fentanyl smuggling).

Implementation:

• Effective Date: Tariff reductions and countermeasure suspensions begin May 14, 2025.
• Duration: Tariff reductions (10% rate) apply for an initial 90-day period, subject to further negotiations.

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Video Report:

TARIFF DROP TO 10%!!! USA & China agree to 90 Day reduction of tariff to negotiate trade differences

TARIFF DROP TO 10%!!! USA & China agree to 90 Day reduction of tariff to negotiate trade differences

The U.S. and China on Monday agreed to temporarily suspend most tariffs on each other’s goods in a move that shows a major thawing of trade tensions between the world’s two largest economies. The trade agreement means that “reciprocal” tariffs between both countries will be cut from 125% to 10%.

TARIFF DROP TO 10%!!! USA & China agree to 90 Day reduction of tariff to negotiate trade differences

The U.S. and China on Monday agreed to temporarily suspend most tariffs on each other’s goods in a move that shows a major thawing of trade tensions between the world’s two largest economies. The trad