White House Announces Trade Deal With China (UPDATE)

May 13, 2025
By: Pietro N. Bianchi

The U.S. and China agreed to reduce tariffs after trade talks in Switzerland. An Executive Order released by the White House states the tariffs decrease on goods from China will be effective for goods entered or withdrawn from warehouse after 12:01 a.m. eastern daylight time on May 14, 2025.

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 August 12, 2025). 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.

The Executive Order also eased tariffs on de minimis packages. The duty rate on imports, which would otherwise qualify for the de minimis exemption, made through the international postal network will decrease from 120% percent to 54% and the alternative flat $100 duty rate will no longer increase to $200 on June 1, 2025.

A fact sheet release by the White House states 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.

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 decreased tariffs on de minimis goods from China and 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, other trade remedies, or de minimis do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.