U.S.–China Announce Tariff Suspensions and New Trade Understandings
China’s Ministry of Commerce announced that the latest round of U.S.–China economic and trade talks, held in Kuala Lumpur, resulted in several notable tariff and export-control suspensions that could temporarily ease tensions for importers and exporters on both sides.
Key Outcomes
The United States will cancel the 10% “fentanyl tariffs” and suspend for one year the 24% reciprocal tariffs imposed on a wide range of Chinese goods, including products from Hong Kong and Macao. In exchange, China will adjust its own countermeasures and continue extending certain tariff exclusions for U.S. goods.
The U.S. has also agreed to pause implementation of its new “Entity List Affiliates Rule”—a measure announced on September 29 that would have extended export restrictions to any entity 50% or more owned by a listed party. China, in turn, will suspend its planned export control measures announced earlier in October, mirroring the one-year duration of the U.S. pause.
Additionally, the United States will delay for one year the Section 301 measures targeting China’s maritime, logistics, and shipbuilding sectors, to which China will respond with a corresponding suspension of its countermeasures.
Both sides also reported progress on anti-drug cooperation (fentanyl), agricultural trade, investment commitments, and the resolution of certain corporate compliance cases, including those involving technology firms.
Implications for Businesses
The announced suspensions provide temporary regulatory certainty for companies that import or export between the United States and China, particularly those in:
- Maritime, logistics, and shipbuilding industries;
- Technology and electronics supply chains potentially affected by the Affiliates Rule;
- Agricultural and food-product sectors; and
- Consumer-goods and textile industries facing reciprocal tariff exposure.
However, the relief is explicitly time-limited—each suspension lasts one year, and no changes have yet been published to underlying Section 301 or Section 232 authorities. Companies should therefore:
- Confirm applicable tariff classifications and determine whether suspended measures apply to current or future shipments.
- Monitor the Federal Register for implementing guidance or confirmation of suspensions by the U.S. Trade Representative and Bureau of Industry and Security.
- Review ongoing exclusion processes—some tariff exclusions may continue under extended relief programs.
- Prepare for possible reinstatement of duties or export controls once the one-year suspension period ends.
Looking Ahead
While the announcement signals a modest easing of bilateral trade friction, it also underscores the fragility of the current détente. For now, businesses have an opportunity to review their compliance posture, plan for potential duty relief, and reassess sourcing and export-control exposure.
Our firm continues to monitor these developments and advise importers, exporters, and logistics providers on compliance with U.S. Customs and Section 301/232 requirements.
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.