U.S.-China Trade Updates Alert

U.S. Commitment

For an initial 90-day period, starting on 14 May, the United States will:

• Apply a 10% reciprocal baseline tariff on imports from China in line with baseline tariff applied on imports from the ROTW

• Suspend 24% points from the original 34% reciprocal tariff implemented on 2 April

• Remove additional tariffs implemented under Executive Orders 14259 and 14266, which increased the reciprocal tariff to 125%

All other tariff actions will remain in place, including:

• Non-preferential/standard “MFN” tariffs (stackable with reciprocal tariffs)

• 7.5% or 25% Section 301 tariffs (stackable with reciprocal tariffs)

• 20% International Emergency Economic Power Act (IEEPA) fentanyl tariffs (stackable with reciprocal tariffs)

• 25% Section 232 tariffs on certain steel and aluminum products and derivatives (not stackable with the reciprocal tariffs)

China Commitment

Similarly, for an initial 90-day period, China will:

• Apply a 10% additional retaliatory tariff on imports from the United States

• Suspend 24% points from the original 34% retaliatory tariff implemented on 4 April

• Remove additional tariffs implemented under Announcement of the Customs Tariff Commission of the State Council No. 5 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 6 of 2025, which increased the retaliatory tariff to 125%

Other tariff actions were not noted in the joint announcement and remain in place, including:

• Non-preferential/standard “MFN” tariffs  

• Retaliatory tariffs to US Section 301 tariffs

• Retaliatory tariffs to US IEEPA fentanyl tariffs on products listed in the Annexes of the Announcement of the Customs Tariff Commission of the State Council No.1 of 2025 and Announcement of the Customs Tariff Commission of the State Council No. 2 of 2025
  
  • Machines for processing fruits, nuts or vegetables under HS 8438.60 are subject to 10% retaliatory tariff

In addition, China is expected to suspend or remove certain non-tariff countermeasures imposed on the United States since 2 April 2025.  

For additional information, please refer to the White House fact sheet.

Tariff Cost Impact

Last year, US imports from China totaled $349.6 M. The new U.S. reciprocal tariffs down from 125% to 10% are estimated to decrease annualized tariff cost by more than $402 M.

Last year, China’s imports from the United States totaled $54.3 M. China’s modified tariffs from 125% to 10% are estimated to decrease annualized tariff costs on U.S. exports of food processing and packaging machinery to China by nearly $62.5 M.  

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