Trump pauses most China tariffs for 90 days
The trade war between the United States and China has reached a truce for the next three months.
President Donald Trump has reached an agreement with China that will remove additional tariffs the U.S. placed on most imported Chinese goods on April 8 and 9, 2025. Those executive orders raised the reciprocal tariffs he placed on imports from most countries on April 2, including a 125% additional levy on imports from China that brought the total tariff on some Chinese products to as high as 145%.
Roughly 60 countries which charge higher duties on U.S. imports had tariffs higher than 10% imposed on their goods coming into the country, although with the exception of China those tariffs had already paused until early July.
[READ MORE: Trump pauses most reciprocal tariffs, raises China levy]
During the pause period, the baseline 10% tariff the U.S. has set on most foreign imports will remain in effect. The Trump Administration will also continue charging an extra 20% tariff on fentanyl-related imports from China and excluding shipments from China from the de minimis exception, which exempts imported shipments with an aggregate value of less than $800 from having to pay tariffs.
In return, during the 90-day pause China will remove all retaliatory tariffs it announced since April 4, 2025, suspend or remove non-tariff countermeasures taken against the U.S. since April 2, 2025, and suspend a 34% tariff on the U.S. it announced on April 4, 2025.
China will retain a 10% tariff on U.S. goods during the period of the pause. The two countries will continue negotiating economic and trade policies during the pause.
According to a White House fact sheet, the U.S. goods trade deficit with China was $295.4 billion in 2024, the largest with any trading partner. As part of the agreement, the U.S. and China will take “aggressive actions” to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America.
This new trade agreement follows a pact President Trump made with U.K. prime minister Keir Starmer on Friday, May 8 that will increase U.S. access to U.K. markets while limiting tariffs on U.K. imports. Trump has said in public statements that the U.S. is actively working on tariff deals with numerous trading partners and more announcements should be coming soon.
Matthew Shay, president and CEO of the National Retail Federation, said in a statement that the NRF applauds and is encouraged by U.S.-China negotiations, which provide for a "significant de-escalation" in their current trading arrangement.
"This temporary pause is a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season," said Shay. "And over the long term, this lays the foundation for substantial progress in achieving truly fair and balanced trade relationships with both China and our other trade partners around the world.
"We urge the administration and our Chinese trade partners to continue discussions to address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies," Shay concluded.
In comments to Reuters, Sheldon MacDonald, CIO of U.K. investment firm Marlborough, said today’s announcement suggests the U.S. would prefer a deal with China over a trade war.
"Our snap reaction is that this reduction is much bigger than expected," said MacDonald. "Yes, it’s only temporary, but the market is going to see this as confirmation that Trump doesn’t really want to cause the sort of disruption he has previously seemed to embrace."
