U.S. & China Reach 90-Day Trade Agreement to Lower Tariffs & Suspend Retaliatory Measures

May 12, 2025 | The U.S. and China have announced a new trade agreement that will reduce tariffs and temporarily pause retaliatory actions for 90 days, effective May 14.

Under the deal, both countries will reduce recently imposed tariffs by 115% while retaining a baseline 10% tariff. The U.S. will suspend reciprocal tariffs imposed on April 2, 8, and 9 but will maintain pre-existing tariffs, including Section 301 and 232 duties — tariffs imposed in response to the fentanyl national emergency. Goods entering the U.S. from China will be subject to a 30% tariff.

China will suspend its 34% retaliatory tariff announced on April 4 for 90 days and remove non-tariff countermeasures issued since April 2. Imports into China from the U.S. will have a 10% tariff.

The deal also establishes a formal mechanism for ongoing economic discussions between the two nations, to be led by Vice Premier He Lifeng for China and Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer for the U.S.