U.S- China Tariff Truce: A 90-day Window of Opportunity for Global Trade

Updated as of 07th July 2025:

At a Glance

Reciprocal Tariffs Deadline Extended

On July 7, President Trump issued an Executive Order extending the reciprocal tariff implementation from July 9 to August 1. These tariffs were initially announced on April 2 and placed on a 90-day suspension, starting April 9, to allow for negotiations with U.S. trading partners.

Country Letters Still in Flux

Several countries have received preliminary tariff rate notifications; however, these details remain subject to change before the new effective date.

Goods from China Are Not Included in the Extension

Under Executive Order 14298, issued May 12, tariffs on Chinese-origin goods remain in effect and are not impacted by this deadline extension.

China, Hong Kong, and Macau – Duty Update

The country specific rate suspension for products of China, Hong Kong, and Macau remains in effect through August 12, 2025. These goods remain subject to tariffs under the IEEPA fentanyl and reciprocal tariff programs, with an additional 20% and 10% ad valorem duty, respectively, unless a valid exemption applies.

By: Vegas Customs Brokers, LLC.

Updated as of 13th May 2025:

2025 Tariff Adjustments on Chinese Imports.

Effective 12:01 a.m. ET on May 14, 2025, under a new executive order by President Donald Trump, the reciprocal tariff rate on Chinese imports will be lowered from 125% to 10%. This significant policy update is part of ongoing U.S.-China trade discussions and will temporarily adjust how certain goods are classified and taxed under HTS codes.

Key Takeaways:

• HTS 9903.01.63 (125%) will revert to its original 34% rate but will be suspended for 90 days starting May 14.

• During this 90-day period, HTS 9903.01.25, which enforces a 10% reciprocal tariff (normally applied to most countries), will temporarily apply to goods from China.

• The change is not retroactive and applies only to goods entered or withdrawn for consumption on or after the effective date.

Additional Tariff Measures Still in Effect:

• HHTS 9903.01.24 (20%): This IEEPA tariff remains applicable to fentanyl-related imports from China.

• Section 301 “Trump Tariffs”: These tariffs will continue to be enforced where applicable.

Affected Items:

Goods from China falling under the specified HTS codes.

Why This Matters:

Importers and freight forwarders should review active shipments and product classifications to assess potential tariff relief or continuation of combined rates. The temporary switch to the 10% tariff creates a narrow 90-day window for cost savings on applicable Chinese goods.

By: The White House

Updated as of 12th May 2025:

The United States and China have agreed to roll back some of the steep tariffs they placed on each other’s goods, giving both sides 90 days to cool tensions and continue negotiations.

Under the deal, U.S. tariffs on Chinese imports will drop from 145% to 30%, while China will cut its own tariffs on American goods from 125% to 10%.

The change takes effect Wednesday and follows a weekend of intense talks in Geneva between trade officials from both countries. Washington agreed to drop its so-called "Liberation Day" tariffs from 34% to 10% for 90 days, and remove all tariffs imposed during the tit-for-tat escalation that followed.

President Donald Trump’s 20% fentanyl-related tariff will stay in place, but most of the broader trade war measures will be temporarily relaxed.

Treasury Secretary Scott Bessent said both sides wanted to get back to doing business.

“The consensus from both delegations is neither side wants to be decoupled, and what have occurred with these very high tariffs…was an equivalent of an embargo, and neither side wants that. We do want trade. We want more balance in trade,” Bessent said.

The agreement was unexpected. A week ago, Bessent said the goal was simply to “de-escalate,” not reach any big breakthrough.

Chinese officials also shifted their tone, calling the agreement good for both countries.

China’s commerce ministry called the move a win for “producers and consumers in both countries,” and said Washington should “completely correct” its trade stance.

“As regards the timing for the release of the joint statement, as we say back in China, if the dishes are delicious, then timing is not a matter,” said Chinese Vice Minister of Commerce Li Chenggang. “So I think no matter when this statement is released, it’s going to be … big news, good news for the world.”

The tariff cuts come as both economies feel the squeeze. Last quarter, the U.S. GDP shrank as businesses rushed to import goods ahead of higher duties. China’s factory activity also fell, and exports to the U.S. dropped sharply.

The two sides also agreed to keep talking. Bessent, Greer, and Chinese Vice Premier He Lifeng will lead a new trade discussion “mechanism,” with meetings rotating between countries or taking place in a third location if needed.

China also committed to removing non-tariff countermeasures imposed against the United States since April 2, although it remains unclear how some of these measures will be walked back.

As part of its retaliation in April, China added rare earths to its controlled export list, opened an anti-dumping probe into chemical firm DuPont's China business and blacklisted some U.S. defense and tech firms.

The wording of the agreement suggests those firms will be removed from the list, which barred trade and investment with China and the anti-dumping probe shelved.

The statement only said countermeasures imposed after April 2 will be removed, which would therefore not include a dozen companies blacklisted in March, and the anti-dumping investigation into Google announced in February.

For now, the temporary pause offers some breathing room.

By: SupplyChain247, Lewis Jackson, Reuters