Joint Statement Analysis: U.S.-China Economic and Trade Meeting in Geneva

TLDR

This document outlines the current U.S.-China tariff situation as of May 12, 2025. After reaching a temporary 90-day agreement, U.S. tariffs on Chinese goods have been reduced from 145% to 30%, while China’s tariffs on U.S. goods dropped from 125% to 10%, effective May 14, 2025. The de minimis exemption for Chinese/Hong Kong goods under $800 remains permanently eliminated, with all packages now subject to either a 120% duty or flat fees ($100-$200) if sent via postal networks, or standard tariffs if shipped through private carriers.

Current U.S. Tariffs on Chinese Goods (as of May 12, 2025)

Background and Recent Escalation:

• In April 2025, the U.S. sharply escalated tariffs on most Chinese imports, raising the rate to 145% in response to Chinese retaliation.
• China responded with its own 125% tariffs on U.S. goods.

Recent Agreement and Temporary Rollback:

• On May 12, 2025, after high-level talks in Geneva, the U.S. and China announced a major, temporary reduction of these tariffs for an initial period of 90 days.
• Both sides agreed to suspend or remove most of the additional levies imposed since early April.

Details of the Tariff Changes:

• The U.S. is suspending 115 percentage points of its tariffs, reducing the effective rate from 145% to 30% for 90 days.
• China is suspending 115 percentage points, reducing its tariff from 125% to 10% for the same period.
• Both countries are also removing or suspending additional tariffs and non-tariff countermeasures imposed since April 2, 2025.

Exceptions and Baseline Tariffs:

• The U.S. will retain a 10% baseline tariff on Chinese goods during this period, as established in Executive Order 14257, with the remaining 20% reflecting other standing measures (e.g., Section 301, Section 232, and fentanyl-related tariffs).
• Certain categories (e.g., fentanyl-related goods) may remain subject to higher or specific tariffs.

Official Confirmation:

• This arrangement is confirmed by the White House joint statement and multiple major news outlets.
• The agreement is set to be reviewed after 90 days, with the possibility of further negotiations or adjustments.

Key Points:

• Current U.S. tariff on most Chinese goods: 30% (down from 145%) for 90 days starting May 14, 2025.
• Current Chinese tariff on most U.S. goods: 10% (down from 125%) for 90 days starting May 14, 2025.
• Additional tariffs imposed since April 2025 are suspended or removed for this period.
• Both sides will continue negotiations, and the temporary rates could change after the 90-day window.

NOTE: The de minimis exemption for goods from China and Hong Kong-previously allowing shipments valued at $800 or less to enter the U.S. duty-free-was eliminated effective May 2, 2025. This change is not affected by the recent 90-day tariff truce; the exemption remains revoked.

Current de minimis tariff regime for China/Hong Kong:

• All packages from China or Hong Kong, regardless of value, are now subject to tariffs.
• For packages sent via the international postal network (e.g., USPS, China Post), carriers can choose between:
  • An ad valorem duty of 120% of the package’s value, or
  • A flat duty of $100 per postal item (for entries between May 2 and May 31, 2025), rising to $200 per item starting June 1, 2025.
• These duties are in addition to any other applicable tariffs (e.g., Section 301, fentanyl-related, or new reciprocal tariffs).
• If the package is shipped via private carriers (e.g., UPS, FedEx, DHL), it is subject to all standard duties and tariffs, including the new 30% general tariff and any other applicable rates.

Key points:

• The de minimis exemption still applies to goods from countries other than China and Hong Kong.
• The end of the exemption means all Chinese/Hong Kong-origin packages, no matter how small, face significant duties and paperwork, closing the loophole exploited by e-commerce giants like Shein and Temu.
• No drawback (refund) is available for these new de minimis duties.

The elimination of de minimis for China/HK is permanent unless changed by future policy; the 90-day tariff truce does not reinstate it.

Note: Some other product categories may still be subject to other standing tariffs or trade remedies (e.g., anti-dumping/countervailing duties, Section 301/232 tariffs) beyond the general rates listed above.