The U.S. and China Agree to Deescalate Tariffs

May 12, 2025

Today, the U.S. and China announced an agreement to deescalate tariffs starting May 14. The fact sheet, which outlines the plan, provides that:

  • The U.S. will remove its additional reciprocal tariffs imposed on China on April 8 and April 9, 2025 (the 84% and the 125%).
  • The U.S. will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, and the 20% tariffs imposed in response to the IEEPA/fentanyl emergency.
  • The U.S. will also suspend its 34% reciprocal tariff imposed on April 2, 2025, for 90 days, but will retain the 10% tariff during the period of the pause.

In exchange, China agrees to:

  • Remove it retaliatory tariffs of April 4, 2025 and also suspend or remove the non-tariff countermeasures taken against the U.S. since April 2, 2025.
  • China will also suspend its initial 34% tariff on the U.S. it announced on April 4, 2025, for 90 days but will retain a 10% tariff during the period of the pause.

Importers and customs brokers alike should discuss the potential ramifications of these actions on the importation of goods into the U.S. and whether it is appropriate to delay the entry filing and release of the goods until May 14 (See 19 CFR 141.68) or to admit the goods into a U.S. bonded warehouse (19 CFR 141.69) pending the implementation of the lower tariffs.

Time of entry is defined as:

§ 141.68 Time of entry

(a) When entry documentation is filed without entry summary.  When the entry documentation is filed in proper form without an entry summary, the “time of entry” will be:

(1) The time the appropriate CBP officer authorizes the release of the merchandise or any part of the merchandise covered by the entry documentation, or

(2) The time the entry documentation is filed, if requested by the importer on the entry documentation at the time of filing, and the merchandise already has arrived within the port limits; or

(3) The time the merchandise arrives within the port limits, if the entry documentation is submitted before arrival, and if requested by the importer on the entry documentation at the time of submission.

(b) When entry summary serves as entry and entry summary.  When an entry summary serves as both the entry documentation and entry summary, in accordance with § 142.3(b) of this chapter, the time of entry will be the time the entry summary is filed with estimated duties attached except as provided in § 142.13(b).

If have questions about this or other customs matters, contact George Tuttle III at geo@tuttlelaw.com or at 415-986-8780.

 

The information in this article is general in nature and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence and may not be considered as such.

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