Even after signing a 90-day trade truce agreement between the US and China, significant tariffs imposed under President Donald Trump remain in effect on many low-cost exports from China. While duties have been reduced slightly under this accord, key sectors continue to face substantial trade barriers.
Background of the Tariff Truce Agreement
Early May 2025 saw an agreement between the U.S. and China for a temporary rollback of tariffs, in an effort to ease trade tensions. U.S. tariffs on Chinese goods were reduced from 145% down to 35% while China reduced theirs from 125% down to 10% – both countries agreed this truce would last 90 days in order to allow further negotiations to take place.
Tariffs on Low-Cost Goods Remain on the Horizon
Even with the truce in place, many Chinese exports such as textiles, toys, and household items continue to incur high tariffs in America. Many small and medium-sized enterprises that rely heavily on American markets rely heavily on these goods for production; the ongoing tariffs have resulted in higher costs for Americans consumers and businesses who depend on these goods.
E-Commerce and Small Parcels Delivery Have Significant Effects
The U.S. has also targeted small parcel shipments from China used by e-commerce platforms. The “de minimis” exemption allowing low-value packages into the country duty-free has been significantly curtailed and as of May 14, 2025 small parcels from China now face a 54% tariff – this change disrupting operations for online retailers while raising prices for consumers.
Economic and Political Implications
Economists warn that tariffs could hinder economic growth and strain U.S.-China relations, although the truce provides temporary relief; businesses have called upon both governments to find long-term solutions that promote fair trade without placing undue burdens on consumers or companies.
Looking Ahead
As the 90-day truce progresses, stakeholders on both sides are closely watching developments. Negotiations outcomes will ultimately decide whether remaining tariffs are lifted or if trade war escalates further – and the international community remains hopeful for an outcome which fosters economic stability and mutual benefits.
Note: Please be aware that this article reflects information available as of May 14, 2025. For up-to-date updates regarding U.S.-China trade relations, please consult official government releases or reputable news sources.