Cross Border Trade Updates
May 13, 2025
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- U.S.-China Trade (new update)
- On 12 May, the United States and China announced an agreement to reduce the additional reciprocal and retaliatory tariff measures taken since 2 April, and to continue discussions regarding economic and trade relations. Please see the forthcoming alert for detailed information and impact analysis.
- For a 90-day period, the United States will reduce the additional reciprocal tariff on Chinese imports to 10%
- For a 90-day period, China will lower its retaliatory duty (to U.S. reciprocal tariffs) on goods exported from the United States to 10%.
- U.S.-UK Trade
- On 8 May, the United States announced that it has reached an agreement with the United Kingdom to reduce applied tariff rates on a “range of goods” in sectors of importance. While the reciprocal tariff rate of 10%, as originally announced on 2 April, is still in effect, the agreement includes implementation of a potential tariff rate quota (TRQ) for U.S. imports of steel and aluminum products from the UK at the MFN/non-preferential rate, rather than the Section 232 rate of 25%. Product scope and TRQ quantity have not yet been specified.
- U.S.-EU Trade
- The European Commission has launched a public consultation on a list of US imports which could become subject to EU countermeasures if ongoing EU-US negotiations do not result in a mutually beneficial outcome and the removal of US tariffs on EU goods. Proposed retaliatory tariff rates were not published as part of the proposal. Comments on the proposed countermeasures can be submitted until 10 June through the EU Survey portal.
- There are several tariff lines for food processing and packaging machinery included on the proposed retaliation list that could impact PMMI members that export to the EU. Please see below a list of these products.
- 8422.2000
- 8422.3000
- 8422.4000
- 8422.9090
- 8438.1010
- 8438.1090
- 8438.2000
- 8438.3000
- 8438.4000
- 8438.5000
- 8438.6000
- 8438.8010
- 8438.8091
- 8438.8099
- 8438.9000
- U.S. Tariff Negotiations
- Please see below the latest news on trade negotiations between the United States and countries seeking to reduce tariffs on their goods.
- EU: On 6 May, a delegation from the European Commission led by DG Trade Commissioner Sabine Weyand was in Washington 6 to 7 May to meet US counterparts.
- Vietnam: On 7 May, Vietnam said that it wants its companies to buy more high-value US imports in large volumes and at a stable pace, reaffirming its opening line on trade talks with Washington to avoid higher tariffs.
- Switzerland: On 9 May, Switzerland and the United States agreed to accelerate trade talks and without specifying a time frame.
- South Korea: On 12 May, South Korea's finance ministry indicated the government would actively communicate with the U.S. over semiconductor tariffs and make an effort to minimize the impact of biopharmaceutical tariffs.
- Actions at the World Trade Organization (WTO)
- On 8 May, China called for members to safeguard the system by improving the transparency and monitoring of significant trade measures, pursuing reform outcomes and pushing all members to anchor its policies to the WTO framework. The proposal, reference “reciprocal” tariffs and “actions of unilateralism and bullying.”
