White House Announces Trade Deal With China

May 12, 2025
By: Pietro N. Bianchi

The U.S. and China appear to have agreed to at least temporarily reduce tariffs after trade talks in Switzerland.

A fact sheet release by the White House states the U.S. will reduce its “reciprocal” International Emergency Economic Powers Act (“IEEPA”) tariff rate on goods from China from 125% back down to 34%, which was the rate announced on April 2, 2025. Further, the U.S. will pause the 34% reciprocal tariff for 90 days (until about mid-August). During this period the “universal” 10% IEEPA tariffs will be in place. All other duties on goods from China remain in place. This includes the 20% IEEPA tariffs to address the fentanyl emergency, Section 301 tariffs, and Section 232 tariffs.

China will remove all retaliatory tariff measures taken since April 4, 2025, and non-tariff measures taken since April 2, 2025. However, a 10% tariff rate on goods from the U.S. will be imposed for the duration of the U.S. reciprocal IEEPA tariff rate pause.

A Joint Statement released by the White House states these actions are to be implemented by May 14, 2025. As of this writing there is no Executive Order, Federal Register notice or other legal document on which the tariff change could be implemented.

To summarize the terms of the apparent agreement, the tariffs announced by the Trump administration on April 2, 2025, have resulted in the U.S. imposing a 10% tariff on goods from China and China imposing a 10% tariff on goods from the U.S. That’s reciprocal. The U.S. has also secured an agreement from China “to establish a mechanism to continue important discussions about trade and economics.” We will provide the details of this mechanism if/when it is established.

If you have questions about IEEPPA tariffs or other trade remedies do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.