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Tariff Shock: U.S. Cuts China Import Duty from 145% to 30%

Tariff Shock: U.S. Cuts China Import Duty from 145% to 30%

Starting May 12, the United States and China will implement reciprocal tariff reductions for a 90-day period—cutting U.S. import duties on Chinese goods from 145% to 30%, and Chinese tariffs on American products from 125% to 10%. This historic move brings significant short-term relief for global e-commerce sellers, easing trade tensions and reducing operational costs across the supply chain.

 

China U.S. tariff reduction 2025

 

See the detailed information below.

 

May 12, 2025 – Vienna

Following high-level economic and trade discussions in Vienna, the governments of the People's Republic of China and the United States issued a joint statement on May 12, 2025, signaling a temporary easing of tensions amid ongoing trade disputes.

Both nations reaffirmed the critical importance of the U.S.-China economic relationship, not only to their own economies but also to global trade stability. Recognizing the need for sustained, long-term, and mutually beneficial cooperation, both sides agreed to reduce tariffs on a reciprocal basis.

 

Key Measures to Be Implemented by May 14, 2025:

United States:

The U.S. will reduce tariffs on selected Chinese goods from 145% to 30%, effective for a 90-day period.

In addition, Executive Orders 14259 (April 8, 2025) and 14266 (April 9, 2025), which had imposed further duties on Chinese imports, will be revoked.

 

China:

China will reduce tariffs on selected American goods from 125% to 10%, also for a 90-day period.

Concurrently, China will amend relevant tariff commission announcements (Nos. 4, 5, and 6 of 2025), removing prior retaliatory duties during this suspension window.

 

These actions are part of a broader framework to rebuild trust, resolve trade frictions, and explore long-term solutions. The two delegations—led by Chinese Vice Premier He Lifeng and U.S. Treasury Secretary Janet Yellen, along with U.S. Trade Representative Katherine Tai—emphasized the spirit of openness, cooperation, and mutual respect during the Vienna talks.

 

Looking ahead, negotiations may continue in China, the United States, or a mutually agreed third-party country. Both sides also agreed to establish working-level groups to address key economic and trade concerns.

 

For cross-border e-commerce sellers, this is a welcome development.

The temporary tariff reductions between China and the U.S. not only ease immediate cost pressures but also signal a positive shift toward a more stable and cooperative trade environment. For sellers navigating international markets, lower import duties can translate into more competitive pricing, healthier margins, and greater flexibility in supply chain planning. While the 90-day window is limited, it offers a valuable opportunity for businesses to optimize shipments, boost profitability, and prepare for long-term strategic growth.