A new trade agreement between the United States and China will see each country lower tariffs by 115%, while retaining an additional 10% tariff.
“Other U.S. measures will remain in place,” according to a May 12 statement from the White House.
The new agreement will go into effect on May 14.
Specifically, China “will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove non-tariff countermeasures taken against the United States since April 2, 2025. China will also suspend its initial 34% tariff on the United States” that was announced on April 4 for 90 days, “but will retain a 10% tariff during the period of the pause.”
In turn, the U.S. will lift the additional tariffs it imposed on China, “but will retain all duties imposed on China” before April 2, 2025, including Section 301 tariffs, Section 232 tariffs and “tariffs imposed in response to the fentanyl national emergency” enacted by the U.S.
In addition, the U.S. will suspend the 34% “reciprocal tariff” it imposed on April 2 for 90 days, but will retain a 10% tariff “during the period of the pause.”
Both countries, according to the White House, “have agreed to establish a mechanism to continue important discussions about trade and economics.”
In response to the news, the Tire Industry Association, in an official statement, said that it “believes the recent trade agreements that the United States has reached with China and the United Kingdom signal a continued shift in the global trade landscape. We are committed to tracking these developments and keeping out members updated as new agreements are made.”
