China Tariffs Update: What the 90-Day Truce Means for U.S. Manufacturers

A Major Shift—But Not a Full Rollback

In a headline-making development, the United States and China announced on May 12, 2025, a 90-day pause in their escalating trade war, dramatically reducing reciprocal tariffs from recent highs. The U.S. will cut tariffs on most Chinese imports while China will reduce its tariffs on U.S. goods from 125% to 10%. This 90 day pause goes into effect on May 14th, 2025.

This truce, the result of face-to-face negotiations in Geneva, signals a move toward cooperation—at least temporarily. For manufacturers depending on international supply chains, it brings a measure of relief. But this is not the time to relax.

Here’s the Bottom Line

Under the new agreement, reciprocal tariffs between the two countries will drop from 125% to 10%. However, not everything is changing:

• The U.S. will maintain its 20% tariff on Chinese imports related to fentanyl.

• The 25% Section 301 tariffs remain fully in effect.

For many electronics and industrial products, this means total U.S. tariffs on Chinese goods still stand at 55%.

Section 301 Tariffs: Still Holding the Line

Despite the headline-grabbing reductions, the 25% Section 301 tariffs continue to apply to a wide range of Chinese imports—including electronics, machinery, and industrial components. Originally implemented in 2018 to counter unfair trade practices, these tariffs were not addressed in the current agreement.

For U.S. manufacturers, this means ongoing cost pressure on critical components. The burden of these tariffs hasn’t gone anywhere.

What’s Not Affected by the Truce?

The 90-day tariff relief does not impact:

• Section 301 tariffs (still 25%)

• Fentanyl-related tariffs (still 20%)

• Strategic product tariffs – including critical minerals, semiconductors, solar components, and steel

While the headline numbers have come down, key sectors remain under tight restrictions.

Final Thought

The 90-day truce is a positive step—but it’s only a partial win. Section 301 tariffs remain in place and continue to affect a wide range of products. Manufacturers must stay sharp, adjust sourcing strategies, and plan with precision.