Newsletter: Stay tuned for May 14th: 115% Tariff Reductions Take Effect Soon

According to The White House Press, a landmark agreement between the United States and China will be aimed at reducing trade tensions and improving bilateral economic relations.

Summary of Key Outcomes

Reciprocal Tariff Reductions

• The U.S. and China will reduce reciprocal tariffs by 115%

• Both Countries will retain a reciprocal tariff with a 10% baseline

90-Day Pause on New Tariff Increases

• Both countries agreed to halt new tariff hikes starting May 14, 2025, creating a 90-day window for continued negotiations. Non-Tariff Barriers Removed

• China has committed to removing certain non-tariff barriers, improving access for American goods and services.

Bilateral Trade Mechanism

• A new joint platform will be created to manage ongoing trade discussions and address future disputes constructively.

What It Means for Global Trade

This deal marks a significant shift in U.S.-China trade relations, providing near-term relief for importers and exporters while aiming to build longer-term economic cooperation. The fact sheet emphasizes that this agreement reflects a strong stance on fair trade, intellectual property protections, and balanced market access.

Actionable Steps

• Expect more details regarding the U.S. and China on May 14, 2025.

• Coordinate with Freight Forwarders: Optimize shipping while reduced tariffs apply.

• Monitor the 90-Day Window: Be prepared for potential changes if no extended agreement is reached.