The United States and China have agreed to a 90-day suspension of recent tariff increases, on the reciprocal tariffs aiming to foster a more stable economic relationship and open channels for continued dialogue.
Effective by May 14, 2025
- United States Actions: The US will suspend 24 percentage points of the additional tariffs imposed on Chinese goods, including those from Hong Kong and Macau, as outlined in Executive Order 14257. This suspension reduces the tariff rate to 10 percent for an initial period of 90 days. Additionally, the US will remove the modified additional tariffs imposed by Executive Orders 14259 and 14266.
- China’s Response: China will reciprocate by suspending 24 percentage points of its additional tariffs on US goods, maintaining a 10 percent tariff rate for the same 90-day period. Furthermore, China will remove the additional tariffs imposed by its Announcements No. 5 and No. 6 of 2025 and suspend or remove non-tariff countermeasures enacted since April 2, 2025.
While the 90-day pause avoids immediate escalation, it’s a short-term fix rather than a resolution. With fundamental issues still unresolved, and both sides sticking to their initial tariff levels, the outlook for a broader agreement remains uncertain. The coming months may offer more clarity, but expectations should remain measured. Additional duties relating to Section 301 and IEEPA fentanyl will continue to apply in addition to these reduced IEEPA reciprocal tariffs.
We will continue to monitor these developments and provide updates as they become available. Reach out to Mohawk Global Trade Advisors for expert insight on how to navigate these tariff updates.