The United States and China have announced a significant breakthrough in their ongoing trade negotiations, reaching an agreement to substantially reduce the reciprocal tariffs that have been in place since early April of this year.
United States
- The United States will reduce the reciprocal tariff to 10% on all products from China for a period of 90 days, commencing May 14, 2025.
- The United States will retain the 20% fentanyl tariff on all products from China.
- All other US measures will remain in place, including Section 301 and Section 232.
- All established anti-dumping and countervailing duty orders will remain in effect.
China
- China will maintain a 10% tariff on products of the United States for a period of 90 days, commencing May 14, 2025.
- China will remove the retaliatory tariffs of April 4th on products of the United States.
- China will terminate the non-tariff countermeasures placed on the United States since April 2nd.
Transportation-Related Impacts
An immediate impact of this announcement is that cargo previously on hold in China will likely be released for shipment, which will be a large bulk of cargo trying to move at all at one time. This will result in backlogs in bookings, space shortages and most likely, increased rates associated with the space shortage.
Details as to the implementation and specific timing, as well as how this will be applied to products already in-transit have not been announced yet. We will continue to monitor this evolving situation closely and keep you informed.
For the actual announcement and complete details announced thus far, please review the following link:
Fact Sheet: President Donald J. Trump Secures a Historic Trade Win for the United States
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