U.S. and China Announce 90-Day Tariff Reductions
May 13, 2025 — Global Trade Update: The UK and India trade deal is making headlines as both nations work towards strengthening their economic ties.
The United States and China have announced a temporary 90-day reduction in tariffs, starting May 14, 2025, aimed at de-escalating trade tensions and boosting cross-border commerce. This major policy shift is expected to significantly affect shipping volumes, import/export flows, and logistics operations between the world’s two largest economies, especially for companies managing imports from China and exports to China.
Key Highlights of the U.S.-China Tariff Deal
- Effective Dates: May 14 – August 12, 2025
- U.S. Tariffs on Chinese Imports: Reduced from 145% to 30%
- Chinese Tariffs on U.S. Exports: Lowered from 125% to 10%
“De Minimis” Threshold Adjusted
The U.S. has reduced its ‘de minimis’ tariff on small-value Chinese shipments from 120% to 54%, effective May 14. A $100 flat fee option remains in place for eligible parcels.
China’s Strategic Concessions
In a move to facilitate broader cooperation, China has lifted its ban on Boeing aircraft deliveries and committed to suspending fentanyl exports to the U.S. These steps aim to resolve key disputes and improve diplomatic relations.
Impact on Trade, Logistics & Business Opportunities
The temporary tariff relief is anticipated to stimulate bilateral trade growth—especially in high-demand sectors including:
- Electronics & Semiconductors
- Industrial Machinery
- Consumer Goods
- Agricultural Products
- Oil, Gas & Renewable Energy
Businesses that rely on airfreight, ocean freight, and international shipping should be prepared to act quickly during this 90-day tariff window. With the reduction in tariffs on imports from China and exports to China, this is a key opportunity to reduce landed costs, improve delivery timelines, and expand market reach. To navigate these changes efficiently, many companies are turning to freight forwarding partners—such as Future Forwarding—for tailored logistics solutions, customs guidance, and optimized supply chain strategies.
What’s Next?
This 90-day window creates a critical period for businesses to optimize supply chains, negotiate new contracts, and capitalize on lowered trade barriers. While the agreement is temporary, its implications are far-reaching—and closely watched by global markets.