Key Points
- China’s Tariff Adjustments: Effective May 14, 2025, China has significantly reduced the additional tariff rate on US goods from 34% to 10% and suspended the 24% additional tariff for 90 days.
- Further Measures on Hold: Additional tariff measures outlined in Tariff Commission Announcements [2025] No. 5 and No. 6 are also paused.
- Driven by US-China Talks: These changes stem from recent US-China trade talks in Geneva aimed at reducing bilateral tariff levels.
- Reciprocal Rollbacks: According to China’s Ministry of Commerce (Shangwubu 商务部), both the U.S. and China have reportedly canceled 91% of their respective additional and retaliatory tariffs.
- Hope for Stability: China hopes the U.S. will correct its “unilateral tariff imposition practices” and work towards a healthy, stable, and sustainable US-China economic relationship.
Hot off the press for anyone tracking U.S. Tariffs and global trade!
This is a big deal, and here’s the lowdown on what’s changing.
Key Tariff Adjustments: What’s Shifting?
China’s Customs Tariff Commission of the State Council has laid out some significant changes:
Rate Reduction & Suspension: Based on the “Announcement of the Customs Tariff Commission of the State Council on Imposing Additional Tariffs on Imported Goods Originating from the United States” (Tariff Commission Announcement [2025] No. 4), things are looking different.
The additional tariff rate previously at 34% is now slashed to 10%.
Plus, the 24% additional tariff rate specifically on U.S. goods? It’s being suspended for 90 days. That’s a crucial window to watch.
Further Measures Paused: Implementation of additional tariff measures detailed in two other key announcements is also on hold:
“Announcement of the Customs Tariff Commission of the State Council on Adjusting Additional Tariff Measures on Imported Goods Originating from the United States” (Tariff Commission Announcement [2025] No. 5)
“Announcement of the Customs Tariff Commission of the State Council on Adjusting Additional Tariff Measures on Imported Goods Originating from the United States” (Tariff Commission Announcement [2025] No. 6)
This signals a potential easing of recent trade tensions and a shift in approach to U.S. import duties.
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- Substantial Progress Achieved: High-level talks made significant headway.
- Major Tariff Rollbacks: Both sides have reportedly cancelled 91% of their respective additional and retaliatory tariffs.
- Reciprocal Tariff Suspension: The U.S. suspended its 24% “reciprocal tariff,” and China matched this by suspending its own 24% retaliatory tariff.
- Meeting Expectations: Measures are believed to meet expectations of producers/consumers and serve global interests.
- China’s Hopes: U.S. will build on progress, meet China halfway, correct unilateral tariff practices, strengthen cooperation, and maintain stable US-China economic relations for global stability.
Visualizing the Impact: Understanding US-China Tariff Adjustments
So, what triggered these shifts in U.S. tariffs?
It looks like these changes stem from recent US-China trade talks in Geneva.
On May 12th, local time, a joint statement dropped the news: both nations are on board to significantly dial back bilateral tariff levels.
This is a move that many producers and consumers on both sides have been hoping for.
It’s seen as beneficial for both the U.S. and China, and honestly, for the global economy as a whole.
Want a clearer picture? This infographic breaks down how the tariffs are evolving:
(Image Source: DF CFW. Infographic details changes in US-China tariffs.)
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China’s MOFCOM Weighs In: Progress on Trade Talks and Tariff Reductions
What’s the official word from China on these trade negotiation outcomes?
A spokesperson from China’s Ministry of Commerce (Shangwubu 商务部) shared some pretty optimistic feedback on the joint statement from the US-China Geneva trade talks.
Here’s the gist of their comments:
Substantial Progress Achieved: The high-level talks made significant headway.
Major Tariff Rollbacks: This is a big one. Both sides are making moves:
The U.S. side has reportedly canceled a whopping 91% of its additional tariffs.
China, in a reciprocal move, has also canceled 91% of its retaliatory tariffs.
Reciprocal Tariff Suspension:
The U.S. has suspended the implementation of a 24% “reciprocal tariff.”
China has matched this by suspending its own 24% retaliatory tariff.
Meeting Expectations: The Ministry believes these measures hit the mark for what producers and consumers in both nations were looking for.
They also see it as serving the interests of both the U.S. and China, and the wider global community.
Hopes for Future Cooperation: Looking ahead, China hopes the U.S. will:
Build on the progress from these talks.
Continue to meet China halfway.
Thoroughly correct what China views as “unilateral tariff imposition practices.”
Strengthen mutually beneficial cooperation.
Maintain a healthy, stable, and sustainable development of US-China economic and trade relations.
Jointly work to bring more certainty and stability to the global economy, especially concerning U.S. tariff policies.
These developments mark a significant moment in US-China trade relations and the ongoing saga of U.S. Tariffs.
Stay tuned for more updates as this situation evolves!
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