On May 12, 2025, the White House issued a fact sheet following negotiations with China to begin reducing tariffs. Both China and the U.S. agreed to decrease IEEPA and reciprocal tariffs by 115% while retaining an additional 10% tariff for 90 days.
With these changes, starting May 14th *, China's reciprocal tariff will be lowered from 125% to 10%, and the U.S. IEEPA tariffs will be reduced from 145% to 30% during the 90-day pause. All other measures, including Section 232 and Section 301 tariffs, will remain unchanged.
The Fact Sheet outlines the details of the countries’ actions to achieve the 115% decrease:
CHINESE ACTIONS:
- China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
- China will also suspend its initial 34% tariff on the United States it announced on April 4, 2025, for 90 days, but will retain a 10% tariff during the period of the pause.
AMERICAN ACTIONS:
- The United States will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act (IEEPA), and Most Favored Nation tariffs.
- The United States will suspend its 34% reciprocal tariff imposed on April 2, 2025, for 90 days, but retain a 10% tariff during the period of the pause.
- IEEPA fentanyl tariffs of 20% will continue for a total of 30% tariff above a Jan 20th, 2025, baseline. Sector specific Section 232 tariffs will continue as well.
*While the fact sheet suggests an implementation date of May 14, 2025; details regarding whether this is the departure date, date of entry or another date are still to be released.
Resources:
Fact Sheet: President Donald J. Trump Secures a Historic Trade Win for the United States – The White House