U.S. and China Pursuing Final Trade Deal

Jun. 23, 2025
By: Marvin E. McPherson

The United States and China have reached a tentative framework agreement aimed at easing trade tensions. With the July 9, 2025, 90-day pause for finalizing a new tariff schedule on Chinese imports fast approaching. The framework reflects apparent progress toward a finalized trade agreement between the two countries.

Under the current outline, the United States would reduce some of its tariffs to a baseline 55%, while China would maintain a 10% levy on U.S. imports. Some reports have indicated that the 55% reflects a continuation of the 10% “reciprocal tariff,” a 20% “fentanyl tariff” (both enacted using IEEPA’s apparent authority) and the Section 301 25% tariff on Chinese goods. Thus, the 55% may be a continuation of existing tariffs, rather than representing a new and additional tariff. The framework also includes key concessions: China would expand rare earth exports to the U.S., and the U.S. would continue to permit Chinese students to study at American universities. However, the agreement still requires formal approval from both President Trump and President Xi.

China has also flagged concerns about its access to integrated circuits, signaling that adjustments to semiconductor-related restrictions are important to China. Treasury Secretary Scott Bessent told lawmakers during a hearing that the deal would not reduce U.S. export restrictions on high-end artificial intelligence chips in return for access to Chinese rare earths.

If you have questions about the trade agreement with China or current tariff rates on products, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.