The temporary agreement between the United States and China announced earlier goes into effect May 14, 2025 offering short-term relief.
We are still waiting for full implementation details from either CBP messages or publication in the Federal Register; however, based on current understanding, the changes will apply to goods with a “date of entry” after 12:01 a.m. ET on May 14, including goods withdrawn from a bonded warehouse or admitted into a Foreign Trade Zone after that time.
Summary of Tariff Changes for China-Origin Goods:
Prior to May 14:
- March IEEPA (Fentanyl-related): 20%
- April IEEPA (Reciprocal Tariff): 125%
- Total Tariff Impact: 145%
Effective May 14 for 90 Days:
- March IEEPA (Fentanyl-related): 20%
- April IEEPA (Reciprocal Tariff): 10%
- Total Tariff Impact (excluding Section 301 and Section 232): 30%
Additional Clarifications:
- The 20% IEEPA Fentanyl tariff from March 4 remains unchanged.
- The original Section 301 tariffs (from the Trump administration, with some increases under the Biden administration) are not affected by this agreement.
- The country specific Reciprocal Tariff levied on China which grew to 125% has been suspended under this agreement for 90 days.
- New effective Reciprocal Tariff: 10%, applicable to articles of China, Hong Kong and Macao.
Example Total Tariff Load (if Section 301 applies):
- 10% Reciprocal + 20% IEEPA + 25% Section 301 = 55%
If Section 232 (steel/aluminum or autos/auto parts) also applies:
- 25% Sec. 232 + 20% IEEPA + 25% Section 301 = 70%
Please note: Section 232 tariffs override the Reciprocal tariff but can stack with IEEPA and Section 301 duties.
We will continue monitoring for official implementation instructions and will provide updates as soon as CBP or the Federal Register confirms them.
For case-specific questions or classification guidance, please reach out to our Customs Brokerage Team to help navigate this evolving situation.