In rather significant news over the weekend, the White House announced a "deal" with China after negotiations in Switzerland.

Per the joint statement of both the United States and China, effective May 14th and for a period of 90 days:

The United States will (i) modify the application of the additional ad valorem rate of duty on articles of China (including articles of the Hong Kong Special Administrative Region and the Macau Special Administrative Region) set forth in Executive Order 14257 of April 2, 2025, by suspending 24 percentage points of that rate for an initial period of 90 days, while retaining the remaining ad valorem rate of 10 percent on those articles pursuant to the terms of said Order; and (ii) 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.

What does that mean in plain English? Basically, that starting May 14th, and for a period of only 90 days, the United States will charge only 10% reciprocal duties on Chinese origin goods. Many press reports misleadingly speak of duties of only 30% being charged on Chinese origin - presumably because the Untied States placed additional tariffs of 20% on Chinese origin products back in February this year and those tariffs (plus the 10% reciprocal rate announced over the weekend) will remain in place. A more accurate read of the tariffs on Chinese origin goods for the next 90 days is:

• regular most favored nation duties (varies based on HS code)
• antidumping and countervailing duties (varies based on order)
• Section 301 duties (7.5% or 25%)
• "fentanyl" duties (20%)
• reciprocal duties (10%) or, if applicable, Section 232 duties (25%) on certain products (e.g., aluminum, steel, etc.)

While the above is certainly welcome news since tariffs will drop for the next 90 days, including on the Chinese side as China agreed to lower its 125% retaliatory tariff to 10%, uncertainty remains. The joint statement makes clear that negotiations are ongoing. Put another way, the tariff reduction is not permanent.

As always, the information provided in this notice is not legal advice. Importers should consult with customs counsel to determine the duty rate(s) applicable to their situation. For further information or questions you may have, please contact Michael Roll at (310) 294-9501 or michael.roll@thetradelawfirm.com or Brett Harris at (845) 255-1850 or brett.harris@thetradelawfirm.com.