US, China Agree To Reduce Tariff Rates For 90 days

The United States and China have agreed to a 90-day tariff reduction, while ongoing negotiations for a comprehensive trade agreement continue.  The deal will lower the overall tariff rate imposed by the United States on Chinese goods from 145% to 30%.

The universal tariff, which was introduced in April and is applied to almost all international goods, accounts for the remaining 10%. China, meantime, has consented to lower its import duties on the US from 125% to 10%.

These new rates will take effect on May 14, 2025.

In comments to reporters on Monday morning, Trump claimed the US “achieved a total reset with China,” while a statement from China’s Commerce Ministry said it hoped the US would stop its behavior of implementing unilateral tariff hikes.

Meanwhile, a tariff of 10% will be applied to the first 100,000 vehicles imported from the United Kingdom into the United States, replacing the previous rate of 27.5% (which was an increase of 25% on the original 2.5% rate).

Upon exceeding this quota, all subsequent vehicle imports from the UK will be subject to the 27.5% tariff. The 10% tariff will remain applicable to those vehicles within the initial quota.