Under a shady tree on Lake Geneva, delegates from the United States and China reached a trade deal that will see the relaxing of reciprocal tariffs on both sides. The deal was concluded this weekend during planned negotiations between the U.S. and China in Switzerland. Treasury Secretary Scott Bessent and Trade Representative Jamison Greer represented the U.S. in the talks. Reciprocal tariffs on Chinese goods will return to the original rate of 34% after a 90 day reduction to 10%.
BACKGROUND
On April 2, 2025, the Trump Administration signed an executive order imposing a 10% general rate of duty on all imports into the United States. This 10% rate was scheduled to increase to a rate specifically designated for each country; in the case of China, the country-specific rate was 34%. Soon after, China announced that it would retaliate against the levied tariff. The Trump Administration responded on April 8, 2025, by raising the China-specific rate to 84%. Following additional Chinese retaliation, the rate was raised to 125% on April 9, 2025.
TERMS OF THE TRADE DEAL
Pursuant to the deal reached with China, the U.S. has committed itself to reduce the reciprocal tariffs on Chinese goods to the 34% imposed by the April 2 Executive Order. The changes for U.S. duties are as follows:
- The U.S. will remove the ad valorem rate increase from 34% to 84% imposed by Executive Order 14259 (“Amendment To Reciprocal Tariffs And Updated Duties As Applied To Low-Value Imports From The People’s Republic Of China”).
- The U.S. will remove the ad valorem rate increase from 84% to 125% imposed by Executive Order 14266 (“Modifying Reciprocal Tariff Rates To Reflect Trading Partner Retaliation and Alignment”).
- The 34% China-specific reciprocal tariff will be reduced to 10% for 90 days.
- The U.S. will retain duties on Chinese goods that were imposed prior to April 2, 2025, including Section 301, Section 232, and the Fentanyl Tariff.
- The deadline for these changes to take effect is May 14, 2025.
CONCLUSION
In summary, as per the trade deal, the tariffs on Chinese goods will be reduced 115% no later than May 14, 2025. The Reciprocal Tariff on China will remain at 10% for 90 days, after which it will return to the original 34%. Other duties on China remain in effect. We will continue to monitor for official guidance from U.S. Customs and Border Protection.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into which tariffs apply to your operations, we invite you to contact us to schedule a consultation.