By Len Fleisig
China and the US have agreed to pause the current tariff rates for 90 days
During this pause for negotiations the US will reduce its tariffs by on Chinese goods from 145% to 30%. China will reduce its tariffs and in US goods from 125% to 10%.
The high-level overview
Both parties have agreed to reduce their reciprocal tariffs on each other’s goods by 115 percentage points for a period of 90 days.
As a result, the US will temporarily lower its tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on American imports from 125% to 10%, according to a joint statement. The mutual tariff revisions will be imposed by May 14.
Additionally, under the agreement, China will suspend or eliminate the non-tariff countermeasures it has imposed on the US since April 2. These measures previously included export restrictions on certain rare-earth minerals, blacklisting dozens of American companies on its “unreliable entity list” and “export control list”, and initiating an anti-monopoly investigation into US chemical giant DuPont.
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Trade: The New Tariff Paradigm
Want an orientation on tariff hikes and their impact on the business community? Leonard Fleisig and Michael Collett deliver a packed hour of content including:
▪️ Executive Authority to Take Unilateral Action
▪️ Current State of Play
▪️ Potential Savings Mechanisms