White House Clarifies China Tariff Changes

This weekend, delegates from the United States and China met in Geneva to discuss trade relations between the two countries. After reaching an agreement, the countries published a joint statement that foreshadowed future reductions of tariffs on both sides. On the U.S. side, the reciprocal tariff rate on Chinese goods was set to drop significantly. Since the issuance of the joint statement, President Trump has signed an executive order, implementing the agreement with China.

Background

On April 2, 2025, the Trump Administration signed an executive order imposing a 10% general rate of duty on all imports into the United States. This 10% rate was scheduled to increase to a rate specifically designated for each country; in the case of China, the country-specific rate was 34%. Soon after, China announced that it would retaliate against the levied tariff. The Trump Administration responded on April 8, 2025, by raising the China-specific rate to 84%. Following additional Chinese retaliation, the rate was raised to 125% on April 9, 2025. Over the weekend of April 10, 2025, China and the United States met in Switzerland, and an agreement was reached.

Reduction and Suspension of the China-Specific Duty Rate

• For Chinese goods entered for consumption or withdrawn from warehouse for consumption on or after 12:01 a.m. ET on May 14, 2025: 10% ad valorem duty. These goods should be classified under HTSUS 9903.01.25.
• Exemptions under HTSUS 9903.01.26-9903.01.33 still apply. 
• After a 90 day suspension, the rate of duty will increase to 34%.
• All additional rate increases from Executive Orders 14259 and 14266 are removed.
• NOTE: other duties and fees remain applicable, including the 20% Fentanyl Tariff.

Decrease of De Minimis Tariffs

• For Chinese postal items containing goods entering on or after 12:01 a.m. ET on May 2, 2025: 54% ad valorem duty.
• Alternatively, at the election of the carrier, for Chinese postal items containing goods entering on or after 12:01 a.m. ET on May 2, 2025: $100 per postal item.
• The scheduled per postal item rate increase from $100 to $200 on June 1, 2025, is eliminated.

This information has been confirmed by official guidance from U.S. Customs and Border Protection, published on May 13, 2025.

As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions.  If you seek strategic counsel and insight into which tariffs apply to your operations, we invite you to contact us to schedule a consultation.