U.S. Tariffs Update – May 12, 2025

After the weekend talks, on May 12, 2025, the United States and China published the Joint Statement on U.S.-China Economic and Trade Meeting in Geneva. As a result, the U.S. government’s general tariff rate on Chinese goods will fall to 10% from 125%. A separate 20% tariff the United States imposed over China’s role in the fentanyl trade will remain. China will cut its retaliatory levies on U.S. goods to 10%. The reductions would last for 90 days while U.S.-China trade talks continue.

The Parties commit to take the following actions by May 14, 2025.

China will:

• modify the application of the additional ad valorem rate of duty on articles of the United States set forth in Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025, by suspending 24% of that rate for an initial period of 90 days, while retaining the remaining additional ad valorem rate of 10% on those articles, and removing the modified additional ad valorem rates of duty on those articles imposed by Announcement of the Customs Tariff Commission of the State Council No. 5 and No. 6 of 2025; and
• adopt all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.

The United States will:

• modify the application of the additional ad valorem rate of duty on articles of China (including articles of Hong Kong and Macau) set forth in Executive Order 14257 of April 2, 2025, by suspending 24% of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10% on those articles pursuant to the terms of such Order; and
• removing the modified additional ad valorem rates of duty on those articles imposed by Executive Order 14259 of April 8, 2025, and Executive Order 14266 of April 9, 2025.

After taking these agreed actions, the Parties will establish a mechanism to continue discussions about economic and trade relations. The representative from the Chinese side for these discussions will be He Lifeng, Vice Premier of the State Council, and the representatives from the United States will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative. As required, the two sides may conduct working-level consultations on relevant economic and trade issues.

If the Joint Statement is implemented during the initial period of 90 days, the U.S. tariff on Chinese goods will be 30% (including the 20% tariff relating to the fentanyl issue imposed under Executive Order 14195 of February 1, 2025, as amended by Executive Order 14228 of March 3, 2025). China’s retaliatory tariff to the reciprocal tariff will be 10%, and the 15% or 10% tariff on certain U.S. products imposed under Announcement of the Customs Tariff Commission of the State Council No. 1 of February 4, 2025, and Announcement of the Customs Tariff Commission of the State Council No. 2 of March 4, 2025, will remain.