United States and China Agree to Partially De-escalate April Tariffs

On May 12, 2025, the United States and China issued a joint statement in Geneva outlining an agreement to de-escalate from the latest rounds of tariff increases.¹ The arrangement reduces tariffs back to the levels of the United States’ April 2 “baseline” and “reciprocal” tariff order and suspends the reciprocal tariff for 90 days to allow for further negotiations. The 10% baseline tariff (and a retaliatory 10% tariff by China) will remain in effect, as will all other active tariffs. China will also lift certain non-tariff retaliation measures announced in early April. The changes enter into effect on May 14, 2025, and the 90-day suspension will last until around August 12, 2025.

The United States’ commitments

US tariff modifications

Following the issuance of the Joint Statement on US-China Economic and Trade Meeting on May 12, President Trump signed an executive order on “modifying reciprocal tariff rates to reflect discussions with the People’s Republic of China” to implement the bilateral arrangement. The changes apply to articles that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 14, 2025.²

The United States will adjust its April 2 baseline and reciprocal tariff rates on China (including Hong Kong and Macau) by:

• Suspending the original 34% reciprocal tariff from the April 2 reciprocal tariff order until around August 12, 2025 (90 days);
• Completely removing the retaliatory increases to the reciprocal tariff rate, imposed on April 8 and April 9 (which had raised the reciprocal tariff rate from 34% to 125%); and
• Reimposing the 10% baseline tariff on imports from China, Hong Kong, and Macau for the next 90 days.

On or around August 12, 2025, the 34% reciprocal tariff will be reimposed in place of the 10% baseline tariff, unless the two countries negotiate another tariff suspension. The 20% fentanyl trade-related tariffs imposed in February and March 2025; the Section 301 tariffs imposed beginning in 2018; the 25% Section 232 tariffs on steel, aluminum, and autos; any applicable antidumping and countervailing duties; and the US most-favored nation (MFN) duty rates are unaffected by the agreement and remain in place.

US de minimis suspension and postal tariff modifications

The United States will maintain its original April 2 prohibition on use of de minimis entry for Chinese products.³ Since May 2, 2025, customs entries of goods originating in China and Hong Kong that would typically qualify for de minimis treatment must instead be entered by a qualified party under a different entry type in the Automated Commercial Environment (ACE). All de minimis eligible goods (that enter the United States other than through the postal service) will be subject to the same duties as other goods imported from China. 

The Trump administration created an alternative system to assess tariffs on postal entries of goods originating in China and Hong Kong, which requires carriers transporting postal goods to pay either an ad valorem duty or a specific duty on each parcel. These tariffs increased several times alongside the reciprocal tariffs in early April. However, unlike the reciprocal tariff rate, the United States is not fully lowering the postal tariffs back to the original levels. Instead, the rates will be lowered from 120% to 54% (for the ad valorem option) and the specific tariff option will be limited to the current level of $100 (removing the instruction for the rate to increase to $200 on June 1). These rates are still higher than the original postal tariff rates, which were 30% or $25 (increasing to $50 on June 1).

China’s commitments

China’s tariff modifications

Following the joint statement, the Tariff Commission of China published a notice adjusting its tariff measures to implement the bilateral arrangement. The changes apply to articles that are imported on or after 12:01 a.m. China Standard Time on May 14, 2025.

China will scale back its retaliatory actions in proportion to the US tariff reductions by: 

• Reducing its original April 4 retaliatory tariff on all US imports from 34% to 10% until around August 12, 2025 (90 days).
• Removing its additional retaliatory tariff increases from April 9 and April 11, which had raised the original 34% retaliatory tariff to 125%.

On or around August 12, 2025, the 10% retaliatory tariff would increase to 34%, unless the two countries negotiate another tariff suspension. China’s 10% or 15% retaliatory tariffs on certain US imports imposed in February and March are unaffected by the arrangement and remain in place. China’s Section 301 retaliation tariffs, which have been in place since 2019, also remain in place.

China’s non-tariff countermeasures modifications

Besides the tariff rollback, China also committed to adopting “all necessary administrative measures to suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.” The joint statement does not explain which specific retaliatory measures would be suspended or removed. Since April 2, China has initiated new antidumping investigations, imposed export controls on rare earth elements, initiated an antimonopoly investigation targeting Dupont China, and added dozens of US companies to the Unreliable Entity List (UEL) and the Export Control List. On May 14, 2025, the Ministry of Commerce issued spokesperson statements saying China will (i) suspend the April 4 and April 9 UEL actions for 90 days (pending specific transaction approvals by the government) and (ii) suspend the April 4 and April 9 export control list actions for 90 days.

Continuing dialogue

The United States and China will also establish a mechanism “to continue discussions about economic and trade relations.” The representative from China will be He Lifeng, Vice Premier of the State Council, and the US representatives will be Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative. The joint statement does not remark on the intended outcome of these continued discussions, or what will happen after the 90-day suspension is exhausted.

In a separate statement from the White House, the Trump administration describes the agreement as setting “a path for future discussions to open market access for American exports.” The Trump administration’s statement also highlights that “the United States and China will take aggressive actions to stem the flow of fentanyl and other precursors from China to illicit drug producers in North America.” A resumption of cooperation on drug enforcement efforts could lead to a resolution of the 20% fentanyl-trade related tariff, but the joint statement says nothing on this matter.

_{1 The US version of the joint statement is accessible here; and China’s version of the joint statement is accessible here.
2 CBP issued updated guidance on May 13, 2025, providing more information on the tariff changes, in “CSMS # 65029337 - Guidance – Modifying Reciprocal Tariff Rate for China.”
3 CBP issued updated guidance on May 13, 2025, providing more information on the modified de minimis arrangements, in “CSMS # 65029543 - Update to GUIDANCE: Federal Register Notice Published on De Minimis Requirements Per Executive Order 14256 and Guidance for Carriers Transporting International Mail.”}

We provide below a list of partners and senior attorneys within the Global International Trade Practice of White & Case. Please contact any of them with questions about this report or other trade issues.

• Washington, DC: David Bond (Partner); Ryan Brady (Partner); Cristina Brayton-Lewis (Partner); Jay Campbell (Partner); Nicole Erb (Partner); Farhad Jalinous (Partner); David Lim (Partner); Gregory Spak (Partner)

• Mexico: Francisco de Rosenzweig (Partner); Carlos Vejar (Local Partner)

• Brussels: James Killick (Partner); Sara Nordin (Partner)

• Geneva: Jasper Wauters (Partner); Charles Julien (Partner)

• London: Chris Thomas (Counsel); Ed Pearson (Senior Associate)

• Paris: Orion Berg (Partner)

• Tokyo: William Moran (Partner)

• Dubai: Marcus Sohlberg (Counsel)

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_{This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.}

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