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.
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
I-Connect007 Editor's Choice: Five Must-Reads for the Week
08/22/2025 | Andy Shaughnessy, I-Connect007In this week’s roundup, we have a variety of articles covering design, manufacturing, sustainability, and, of course, tariff negotiations. We have a milestone anniversary to celebrate as well, with Dan Beaulieu about to publish his 1,000th column. When does Dan even sleep? Here’s to hoping that we have 1,000 more weeks of "It’s Only Common Sense."
50% Copper Tariffs, 100% Chip Uncertainty, and a Truce
08/19/2025 | Andy Shaughnessy, I-Connect007If you’re like me, tariffs were not on your radar screen until a few months ago, but now political rhetoric has turned to presidential action. Tariffs are front-page news with major developments coming directly from the Oval Office. These are not typical times. President Donald Trump campaigned on tariff reform, and he’s now busy revamping America’s tariff policy.
Product Refreshes and Inventory Pull-In Ahead of Tariffs Led to Growth in Tablet Market by 13.1% in Q2
08/08/2025 | IDCWorldwide tablet shipments grew 13.1% year-over-year in the second quarter of 2025 (2Q25), totaling 38.3 million units, according to data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.
SIA Statement on Semiconductor Tariffs Announcement
08/08/2025 | SIAThe Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer regarding President Trump’s semiconductor tariff announcement.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
08/08/2025 | Andy Shaughnessy, I-Connect007If you’ve been watching the news lately, you might be tempted to opine, “What’s going on here?” In this week’s must-reads, we have a wrap-up of the latest news about U.S. tariffs with Asia, and columnist Tom Yang explains why some PCB fabrication business should remain in China. We also have a piece that examines the unprecedented growth that green manufacturing is expected to see over the next four years.