US Lowers Reciprocal Tariff on Chinese Imports to 10 Percent

Donald Trump has issued an executive order (EO) prescribing the means for reducing the 125% tariff against goods from China as a result of ongoing talks between the US in China in Geneva, Switzerland.

Starting at 12:01 am on May 14, 2025, the 125% tariff against Chinese imports issued to address the trade imbalance between the US and China under the International Emergency Economic Powers Act (IEEPA) will be removed and reduced to its “pre-escalation” rate of 34%.

Simultaneously, that 34% rate will be suspended for a period of 90 days, meaning imports from China will be instead subject to the “baseline” 10% rate currently applicable to all US imports (except where otherwise subject to additional trade remedies, such as section 232 tariffs on steel and aluminum or the 25% tariff on goods from Mexico and China).

This means that the sum total of trade remedies (additional tariffs) against imports from China will drop from a potential high of 170% to a high cap of 55%.

The EO also prescribes a reduction in the duties levied on international postal shipments from China valued under $800: such shipments will be subject to a 54% tariff against the value of the shipped item (down from 120%) and will no longer increase to a per-package rate of $200 on June 1, 2025, as prescribed by  EO 14266.

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Contributor: Andrew Dosher

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