U.S. and China Joint Amendment on Tariff Rates
- Schulz Trade Law
- May 12
- 1 min read
Updated: May 26
May 12, 2025
A recent joint statement between the United States and China announced that the United States has committed to reducing the IEEPA/reciprocal tariffs on May 14.
Specifically, the United States will commit to the following actions for a 90-day period:
Reduce the 34% reciprocal tariff rate imposed on April 2 to 10%.
Remove the 125% additional duties imposed on April 8 and 9 .
Chinese goods will still be subject to an additional 20% IEEPA tariff rate imposed on February 1, 2025, pursuant to Executive Order 14195. As a result, Chinese goods will still be subject to an additional tariff rate of 30%, which will continue to stack on Section 301 duties. The reduced tariff rates shall also apply to Hong Kong and Macau.
Likewise, China will commit to the following actions for a 90-day period:
Reduce China’s 34% retaliatory tariff rate on U.S. goods to 10%.
Remove any additional duties imposed on U.S. goods after April 2, 2025.
Remove any non-tariff countermeasures imposed after April 2, 2025.
Therefore, U.S. goods will only be subject to an additional tariff rate of 10%.
As previously stated, the United States and China have only committed to reducing the tariff rates temporarily – specifically 90 days. An executive order has not been issued, and therefore U.S. and China tariff rates are still subject to change.
In addition, the decrease in tariffs will not be retroactive. Thus, businesses should remain cautious until reduced tariff rates are in permanent effect.
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