U.S. to Reduce Customs Duties on Inbound Chinese Packages
Breaking News: Tariff Relief in Sight: US-China Suspend Mutual Tariffs for 90 Days
In an unexpected turn of events, the US and China have agreed to a 90-day truce in their ongoing tariff war. Starting May 14, 00:01 Eastern Time (07:01 Moscow time), the suspensions will be in effect. The base fee for shipping will continue to be $100.
The Previous Standoff:
On May 2, the US axed the duty-free import of parcels from China valued up to $800. Donald Trump alleged Chinese firms were circumventing tariffs via this loophole. Consequently, Hong Kong Post halted shipments to the US. However, this halt didn't include the transportation of documents.
The New Agreement:
On May 12, both nations announced the suspension of their "mutual" tariffs. The US will drop tariffs on Chinese imports from 145% to 30%, while China will lower tariffs on US imports from 125% to 10%. The basic import tariff will remain steadfast at 10%. This arrangement kicks off on May 14.
Looking Ahead:
Under this agreement, the US will revoke tariffs imposed in April 2025, but earlier tariffs, including Section 301 and Section 232 tariffs, will stay intact. China will abolish retaliatory tariffs declared since early April 2025 and suspend non-tariff countermeasures instigated against the US since April 2, 2025. After May 14, the minimum tariff will remain a fair 10%, safeguarding domestic industries while opening doors for further negotiations.
Both nations have set up a mechanism for sustained discussions about economic and trade relations. Leading discussions will be Vice Premier He Lifeng from China and Secretary of the Treasury Scott Bessent and United States Trade Representative Jamieson Greer from the US, with working-level consultations as required. This suspension of high tariffs will remain active until August 12, 2025, after which a review will be conducted.
This historic agreement represents an attempt to de-escalate the prolonged US-China tariff dispute that escalated in early 2025. By mutually suspending the highest tariff rates and maintaining a moderate 10% tariff, both sides aim to protect their native industries while fostering a constructive dialogue for improving bilateral trade relations. This development is seen as a significant step towards stabilizing one of the world's most crucial economic relationships.
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- The suspension of mutual tariffs between the US and China, as announced on May 12, is expected to have a significant impact on both the finance and industry sectors, potentially influencing the economy and general-news.
- The ongoing negotiations between the US and China, facilitated by Vice Premier He Lifeng and Secretary of the Treasury Scott Bessent, could shape the future of political relations between the two nations and the global economy, particularly in terms of trade and finance.
