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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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06/18/2025 | IPCOn June 12, the Trump Administration announced an agreement to implement the framework of the trade deal with China reached earlier in May. Reports indicate the following high-level terms: A 55% combined tariff on imports from China, 10% “reciprocal” tariffs under the International Emergency Economic Powers Act (IEEPA), 20% IEEPA-based fentanyl tariffs, and Existing Section 301 tariffs, which in many cases are 25%.
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Nolan’s Notes: Moving Forward With Confidence
06/03/2025 | Nolan Johnson -- Column: Nolan's NotesWe’re currently enjoying a revitalized and dynamic EMS provider market with significant growth potential. Since December 2024, the book-to-bill has been extremely strong and growing. Starting with a ratio of 1.24 in December, book-to-bill has continued to accelerate to a 1.41 in April. Yet, there is a global economic restructuring taking place. To say that the back-and-forth with tariffs and trade deals makes for an uncertain market is an understatement. While we may be in a 90-day tariff pause among leading economic nations, the deadline is quickly approaching and that leaves many of you feeling unsettled about what to expect.