U.S. Tariff Update - May 12, 2025: Proposed 90 Day Mutual Tariff Reduction Between the U.S. and China

There have been few significant tariff news updates since the flurry of activity in March and into early April. However, Monday morning brought welcome relief to shippers across the globe amid proposals of a pause on new-as-of-2025 U.S. tariffs on goods originating from China. 

Here is what we know:

• Proposed 90-day reduction period begins May 14. 

  • Tariff reductions during this period are proposed to be mutual. 

    • Presently the U.S. is planning to lower the new-as-of-2025 tariffs from 145% to 30% on goods originating in China, and China is planning to lower levies on U.S. goods from 125% to 10%. 

    • This reduction only applies to tariffs implemented this year in both countries. Existing tariffs and fees that were in effect prior to this year's changes are likely to remain in place. 

  • Both countries have seen a slowdown in imports, exports, and demand since the higher tariff rates were enacted in early April, as reported in our May port report.

    • As with the rush that was seen in late March to get goods into the U.S. prior to the enacting of the high tariff rates, many forecasts are anticipating another rush to get goods imported or exported during this 90-day pause, to take advantage of the lower rates for companies that had put a full stop on shipping goods between China and the U.S.

  • Further trade talks are anticipated to occur during the 90 day pause period.

We expect additional changes and updates in the coming weeks. As the U.S. Department of Commerce works to release official guidance on current rates, we will continue to keep an eye on this story and report accordingly.

Our advice remains the same; the best advisors to talk to are the vendors and importers handling the transport of these goods into the U.S.. Importer companies and the vendors themselves are better able to advise on which components of the products - if any - may be subject to the new tariffs, taxes, and fees and can help make plans accordingly.