U.S.-China Mutual Customs Tariff Agreement (May 2025)

A commercial and economic agreement signed on 12 May 2025 between the United States of America and the People’s Republic of China, providing for the temporary reduction of mutual customs duties.

_{ABD Hazine Bakanı Scott Bessent (sağda) ve ABD Ticaret Temsilcisi Jamieson Greer (solda), Cenevre görüşmelerinin ardından düzenlenen basın toplantısında, 12 Mayıs 2025 - Anadolu Ajansı}

The agreement was signed following negotiations held in Geneva Switzerland on 10–11 May 2025. The United States delegation was led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer while the Chinese delegation was headed by Deputy Prime Minister He Lifeng. Under the agreement tariffs imposed by the United States on Chinese products were reduced from 145% to 30% and tariffs imposed by China on U.S. products were reduced from 125% to 10% effective 14 May 2025 for a period of 90 days. The additional 20% tariffs previously imposed in February and March 2025 related to fentanyl were unaffected by the agreement and remain in force. In addition the parties agreed to establish a continuous consultation mechanism on economic and trade matters within the framework of the agreement.

In February 2025 the United States of America began applying new customs tariffs on goods imported from China. On 1 February 2025 a general tariff of 10% was imposed. On 10 February additional tariffs of 25% were applied to steel and aluminum imports and on 26 March an additional 25% tariff was introduced on all automobiles and automobile parts.

_{A photograph taken while Donald Trump announced his tariffs, 2 April 2025 - Anadolu Agency}

On 2 April 2025 under measures announced by the U.S. administration as “Liberation Day” the total customs tariff on Chinese-origin goods was raised to 54%. Subsequent administrative decisions on 9 April increased this rate to 145%. During the same period the special 20% tariffs introduced in February and March 2025 related to fentanyl remained in effect.

On 11 April 2025 the People’s Republic of China announced that it had raised its customs duties on goods imported from the United States to 125%. In addition export restrictions were imposed on rare earth elements several U.S.-based technology and defense firms were added to a blacklist and anti-dumping investigations were initiated against American companies such as DuPont. The Chinese Ministry of Commerce stated that these countermeasures were implemented in response to U.S. decisions taken after 2 April 2025.

As of April 2025 approximately 60 billion dollars of bilateral trade between the United States and China had been effectively halted. As a result China experienced a decline in its export volume with manufacturing production levels reaching their lowest point in the past 16 months. In the United States gross domestic product contracted in the first quarter of 2025. Both countries faced disruptions in their import-export balances and the high customs duties imposed by both sides caused disruptions in supply chains and price volatility.

In response to mounting economic pressures and the need to manage the impact of tariffs a direct negotiation process was initiated between the parties. Accordingly delegations led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer and Chinese Deputy Prime Minister He Lifeng held two days of talks in Geneva Switzerland on 10–11 May 2025. The talks were held at a private meeting complex in the Cologny district belonging to Switzerland’s Permanent Mission to the United Nations.

During the two-day negotiation process the parties exchanged views on the levels of mutual customs tariffs the duration of their application the removal of non-tariff barriers and the establishment of a long-term economic dialogue. In addition the special 20% tariffs imposed by the United States in February and March 2025 related to fentanyl were addressed as a separate agenda item.

The parties also discussed three separate tariff measures introduced by the United States under Presidential Orders issued on 2 April 2025 and on 8–9 April 2025. The Chinese side provided information on its own measures implemented in April 2025 including import tariffs on U.S. goods restrictions on exports of rare earth elements anti-dumping investigations and company blacklists and outlined its position on the removal of these measures.

According to the joint statement issued on 12 May 2025 the United States of America and the People’s Republic of China agreed to implement a temporary 90-day reduction in mutual customs duties. The United States reduced the total tariff on goods imported from China from 145% to 30%. China reduced the tariff on U.S. products from 125% to 10%.

These reductions targeted only the reciprocal tariff increases implemented after 2 April 2025. However the additional 20% tariffs introduced in February and March 2025 related to fentanyl were retained by the United States.

In the United States tariff regulations were revised under three separate presidential orders. The additional 24% tariff established under Executive Order 14257 was suspended and the additional duties introduced under Executive Orders 14259 and 14266 were fully repealed. On the Chinese side the State Council Tariff Commission temporarily suspended the additional 34% tariff specified in its 2025/4 notice and fully revoked the rates established under notices 2025/5 and 2025/6. These decisions were scheduled to take effect simultaneously as of 14 May 2025.

Beyond the tariff reductions the parties agreed within the framework of the agreement to establish an institutional consultation mechanism to sustain long-term economic relations. This mechanism will be led by Chinese Deputy Prime Minister He Lifeng U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer.

The consultation meetings are expected to be held alternately in China the United States or a third country mutually agreed upon by the parties. The joint statement also included provisions for the establishment of expert committees at the technical level to assess trade-related disputes.

WTO Director-General Ngozi Okonjo-Iweala described the agreement between the parties as a “positive development” and encouraged the continuation of the process. The Chinese Ministry of Commerce stated in its official announcement that the adjustments were “consistent with the expectations of producers and consumers in both countries” and “based on the principle of mutual benefit.”

Various multilateral trade platforms and analytical institutions assessed the agreement as a step that alleviates short-term trade flows but does not resolve structural issues and emphasized that processes aimed at addressing structural problems have yet to be initiated.

The US–China Reciprocal Tariff Agreement, signed on May 12, 2025, is a bilateral commercial and economic accord stipulating the temporary reduction of mutually imposed customs duties.

_{U.S. Treasury Secretary Scott Bessent (right) and U.S. Trade Representative Jamieson Greer (left) at the press conference following the Geneva negotiations, May 12, 2025 – Anadolu Agency.}

The agreement was concluded following negotiations held in Geneva, Switzerland, on May 10–11, 2025. The United States was represented by Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, while the Chinese delegation was led by Vice Premier He Lifeng. According to the terms of the agreement, effective from May 14, 2025, both countries committed to a 90-day reduction in reciprocal tariffs: U.S. tariffs on Chinese imports were lowered from 145% to 30%, and Chinese tariffs on American goods were reduced from 125% to 10%.

Tariffs previously enacted in connection with fentanyl—amounting to an additional 20%—remained unaffected by the agreement and continued to apply. Moreover, the two parties agreed to establish a standing mechanism for ongoing consultations on trade and economic matters within the framework of the agreement.

In February 2025, the United States introduced a series of new tariff measures targeting goods imported from China. On February 1, a general tariff of 10% was imposed. This was followed by a 25% tariff on steel and aluminum imports on February 10, and another 25% tariff on all automobiles and auto parts on March 26.

_{A photograph of Donald Trump taken during the announcement of the new tariffs, April 2, 2025 – Anadolu Agency.}

On April 2, 2025, under a set of regulations announced as “Liberation Day,” the total tariff burden on Chinese-origin goods was raised to 54%. Further administrative decisions enacted on April 9 escalated this rate to 145%. Meanwhile, special tariffs of 20% imposed in February and March on goods related to fentanyl remained in effect and were excluded from the subsequent rollback agreement.

In response, on April 11, 2025, the People’s Republic of China announced that it would raise its tariffs on imports from the United States to 125%. In addition to these tariff hikes, Beijing introduced export restrictions on rare earth elements and placed certain U.S.-based technology and defense companies on a blacklist. Furthermore, anti-dumping investigations were launched against American firms, including DuPont. The Chinese Ministry of Commerce stated that these countermeasures were enacted in direct response to the tariff escalations introduced by the United States after April 2.

By April 2025, the bulk of the approximately $600 billion in bilateral trade between the United States and China had come to a halt. China experienced a decline in export volumes, with industrial production in the manufacturing sector falling to its lowest level in 16 months. On the U.S. side, gross domestic product contracted in the first quarter of 2025. Both nations witnessed a deterioration in their trade balances, while the imposition of high tariffs on both sides led to disruptions in supply chains and increased price volatility.

In light of mounting economic pressures and the disruptive effects of high tariff rates, the United States and China commenced direct negotiations to seek a resolution. As part of this effort, delegations led by U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng, convened in Geneva, Switzerland, on May 10–11, 2025. The two-day discussions were held at a private diplomatic facility in the Cologny district, operated by the Permanent Mission of Switzerland to the United Nations.

Throughout the negotiations, both parties addressed several core issues, including the scale of reciprocal tariff rates, the duration of these tariffs, the elimination of non-tariff barriers, and the establishment of a long-term framework for economic dialogue. A specific agenda item was the 20% fentanyl-related special tariffs imposed by the U.S. in February and March 2025, which were discussed on a separate track.

The parties also reviewed three key U.S. tariff measures enacted under the April 2, 2025 “Liberation Day” package and subsequent executive orders issued on April 8 and 9. The Chinese delegation, in turn, presented details of its retaliatory measures—including import tariff hikes, restrictions on the export of rare earth elements, anti-dumping investigations, and the blacklisting of certain U.S. companies—and articulated its position on the potential rollback of these measures.

According to the joint statement released on May 12, 2025, the United States and the People’s Republic of China agreed to implement a temporary reduction in reciprocal customs duties for a 90-day period. The United States reduced its total tariff on goods imported from China from 145% to 30%, while China lowered its tariff on U.S. products from 125% to 10%.

These reductions specifically target the retaliatory tariff increases introduced after April 2, 2025. However, the 20% additional duty associated with fentanyl, enacted by the United States in February and March, remains in force and was not affected by the agreement.

In the United States, the tariff regime was revised through three separate presidential executive orders. The additional 24% duty introduced under Executive Order 14257 was suspended, while the tariffs imposed under Executive Orders 14259 and 14266 were fully repealed. On the Chinese side, the Customs Tariff Commission of the State Council suspended the 34% additional duty set forth in Announcement No. 4/2025 and entirely revoked the measures stipulated in Announcements No. 5 and No. 6. All changes are scheduled to come into effect simultaneously on May 14, 2025.

Beyond the temporary tariff relief, both parties committed to establishing a permanent institutional framework for economic dialogue. The consultation mechanism will be led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent, and U.S. Trade Representative Jamieson Greer. Future meetings are expected to take place alternately in China, the United States, or in a third country agreed upon by both sides. The joint statement also foresees the creation of technical-level expert committees where necessary, which will be tasked with examining trade-related disputes within this framework.

Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), described the consensus reached between the two countries as a “positive development” and encouraged further continuation of the dialogue. In its official statement, the Chinese Ministry of Commerce emphasized that the new arrangements align with the expectations of producers and consumers in both countries and are based on the principle of mutual interest.

Various multilateral trade platforms and analytical institutions interpreted the agreement as a short-term relief measure rather than a structural solution. While acknowledging its potential to ease trade flows temporarily, these bodies underscored that the process for addressing the deeper structural issues has yet to begin.