Update as of Monday, May 12:
On May 12, the White House announced that President Donald Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports.
The United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland. Both parties affirmed the importance of the critical bilateral economic and trade relationship between both countries and the global economy.
In reaching an agreement, the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff. Other U.S. measures will remain in place.
Both sides will take these actions by May 14.
Chinese Actions:
- China will remove the retaliatory tariffs it announced since April 4 and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2.
- China will also suspend its initial 34% tariff on the United States announced on April 4 for 90 days, but will retain a 10% tariff during the period of the pause.
American Actions:
- The United States will remove the additional tariffs it imposed on China on April 8 and April 9 but will retain all duties imposed on China prior to April 2, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs.
- The United States will suspend its 34% reciprocal tariff imposed on April 2 for 90 days, but retain a 10% tariff during the period of the pause.
Ongoing Actions:
When these changes come into effect, both nations agreed to establish a mechanism to continue important discussions about trade and economics. China will be represented by He Lifeng, Vice Premier of the State Council. The United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
New China Tariff Stacking:
On May 14, the China tariffs will stack as follows:
- 10% reciprocal OR Section 232* (whichever applies depending on the product) + 20% fentanyl + 25%* Section 301 = 55% + existing Most Favored Nation/Normal Trade Relations tariff
* If a Section 232 tariff applies, then the 10% reciprocal tariff will not apply. HTS code lists are specified in the Federal Register.
* Section 301 tariffs are variable, depending on the HTS code and product. Section 301 tariffs currently apply to most Chinese products.
View the White House’s Fact Sheet here.
Update as of Friday, May 9:
Thursday, May 8, President Donald J. Trump and U.K. Prime Minister Keir Starmer announced a brand-new trade deal aimed at opening up U.K. markets to U.S. businesses while strengthening America’s national security at the same time.
According to the White House, this agreement will cut tariffs on British cars, steel and aluminum coming into the U.S., while making it easier for American beef producers to sell their products across the pond. While the final details are still being worked out, the White House has released a fact sheet with a broad overview.
Based on what’s been shared so far:
- U.S. farmers and producers could gain up to $5 billion in new export opportunities to the U.K. including more than $700 million in ethanol exports and $250 million in other agricultural goods like beef.
- Both countries are committing to working together to make it easier to trade industrial and agricultural products.
- The deal closes loopholes and increases U.S. firms’ competitiveness in the UK’s procurement market.
- It will simplify customs for U.S. exporters.
- Stronger rules will be in place for things like intellectual property, labor rights, and environmental standards.
- U.S. aerospace companies will get better access to top-quality U.K. parts, helping keep supply chains strong.
- It also sets up a secure supply chain for pharmaceuticals.
As for tariffs:
- The current 10% reciprocal tariff (originally announced on April 2) is staying in place.
- The United States will agree to an alternative arrangement for the Section 232 tariffs on UK autos. Under the deal U.K. carmakers can export up to 100,000 vehicles to the U.S. per year at the 10% rate with anything over that being hit with a 25% tariff.
The U.S. has also acknowledged steps the U.K. has taken to address the global steel excess capacity. Both sides will now work on a new arrangement to replace current steel and aluminum tariffs. This includes forming a new trade union focused specifically on those industries.
The White House says this deal sets the stage for more balanced, fair-trade agreements with other countries moving forward.
To stay up to date on tariff developments, visit RVIA’s website here. For questions on this announcement, please contact Samantha Rocci, director of federal affairs.
