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U.S., China Announce New Trade Deal, Temporary Tariff Relief
May 12, 2025 | IPCEstimated reading time: 1 minute
The White House announced a new trade agreement with China on May 12 aimed at reducing trade tensions and providing temporary tariff relief for manufacturers.
Key Provisions:
- Tariff reductions announced: The U.S. will reduce tariffs on Chinese goods from 145% to 30%, while China will lower tariffs on U.S. goods from 125% to 10%.
- 90-Day implementation window: The tariff reductions take effect May 14, 2025, and remain in place for an initial 90-day period.
- Suspension of new tariffs: Both countries will suspend additional tariff actions taken since April 2025, although a baseline 10% tariff will remain in effect.
- IEEPA and Section 301 tariffs still in place: The 20% IEEPA tariff on fentanyl-related products and all existing Section 301 tariffs remain unchanged.
- Printed circuit board exception: The current exception for 2- and 4-layer printed circuit boards remains in effect through May 31, 2025.
- Continued dialogue: The deal establishes an official U.S.–China dialogue led by Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer, alongside Chinese Vice Premier He Lifeng.
In a statement, IPC officials welcome this progress and the recognition of key manufacturing inputs. However, significant trade barriers remain. “We continue to urge the Administration to grant broader relief for materials and components essential to the domestic electronics industry,” said Rich Cappetto, senior director, North American Government Relations.
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