Key trade updates, analysis, and updated resources

US-China trade deal

Since the trade deal was announced on 30 October, the US and China have each published information clarifying trade actions. The White House released two FRN’s one pausing higher IEEPA reciprocal tariffs on China, and second reducing the IEEPA fentanyl tariff, while China’s Ministry of Finance published a notice setting the repeal of select retaliatory tariffs on certain ag goods after the U.S. fentanyl cuts take effect. Full details are as follows:

Imports from China into the US: 20% reduced total tariff rate, effective 10 November, comprised of:

• 10% IEEPA fentanyl (reduced from 20%)
• 10% IEEPA reciprocal baseline (reciprocal tariff increase of 24% suspended until next year, 10 November 2026)
• We estimate $35 M in tariff cost avoidance on imports from China per year, as total exposure declines from $104.8 M to $70 M.

U.S. exports to China: 10% retaliatory tariff remains in place. Retaliatory tariff increase of 24% suspended for one year.

• In addition to IEEPA 10% retaliatory tariff, US-origin of packaging and food processing machinery continue to be subject to MFN + retaliatory tariffs of 5-25% from Section 301 action taken during the first Trump Administration.
• As a result, there is no change on tariff cost exposure for U.S. exports to China.

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Increased market access for U.S. exports to Malaysia and Cambodia

As we reported on 27 October, USTR published trade agreements with Malaysia and Cambodia. The agreements will provide preferential duty-free access for U.S. exports of packaging and food processing machinery. These products currently enter Malaysia duty free, however, exports of packaging and food processing machinery face tariffs of 7% or 15% into Cambodia. In 2024, U.S. exports to Cambodia were minimal ($500 K) but tariff cost savings due to the agreement can be up to $40 K.

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Here is an updated tariff reference sheet and the PMMI FAQ sheet with the latest information