As of May 14, 2025, the United States and China have agreed to a 90-day tariff reduction, significantly lowering previous rates. This agreement, resulting from high-level trade talks in Geneva, aims to ease tensions and stimulate trade between the two nations.

U.S.–China Tariff Update: May 2025

📉 Tariff Reductions

• United States: Reduced tariffs on Chinese imports from 145% to 30%.

• China: Lowered tariffs on U.S. goods from 125% to 10%.

  These reductions are effective from May 14, 2025, and will last for 90 days, pending further negotiations.

📦 Impact on Shipping and Logistics

Following the tariff reductions, there has been a significant surge in shipping demand:

• Cargo Bookings: Increased by nearly 300% as importers rush to take advantage of the lower tariffs.

• Shipping Rates: Freight rates from China to the U.S. have risen by approximately 8%, with expectations of further increases due to heightened demand.

📋 Carrier Updates:

In response to the tariff changes, YanWen and Yun Express have announced the following adjustments effective May 13, 2025:

• Tax-Inclusive Pricing Model (T86) Terminated: Transitioning to a model where duties are calculated based on the declared value and product classification (HTS code) provided by the customer.

• Declared Value Limitations: Each item's declared value must be between $1 and $249 USD. Customers should prepare invoices and product links for potential customs inspections.

• Cost Reductions: Significant decreases in per-kilogram shipping and handling fees across various services.

• Duty Payment: Duties will be paid on behalf of the customer, and any anomalies post-payment will not be eligible for refunds.These changes aim to align with the new tariff structures and provide cost-effective solutions for clients.

Note: This 90-day tariff reduction presents an opportunity for businesses to optimize their import strategies. However, given the temporary nature of the agreement, it's crucial to remain vigilant and prepared for any subsequent changes.

Citations:

• The White House. (2025, May 12). Modifying reciprocal tariff rates to reflect discussions with the People's Republic of China. https://www.whitehouse.gov/presidential-actions/2025/05/modifying-reciprocal-tariff-rates-to-reflect-discussions-with-the-peoples-republic-of-china/

• Paris, C. (2025, May 15). Shipping rates rise as U.S.-China trade truce drives import surge. The Wall Street Journal. https://www.wsj.com/articles/shipping-rates-rise-as-u-s-china-trade-truce-drives-import-surge-cb9a67bf

• Times of India. (2025, May 15). US-China tariff pause: Cargo bookings from China to US surge 300%. The Times of India. https://timesofindia.indiatimes.com/business/international-business/us-china-tariff-pause-cargo-bookings-from-china-to-us-surge-300/articleshow/121186624.cmsThe Times of India+1The Times of India+1

• Times of India. (2025, May 12). US, China suspend part of their tariffs for 90 days; tariffs to come down 115% on both sides. The Times of India. https://timesofindia.indiatimes.com/business/international-business/us-china-trade-deal-latest-news-donald-trump-xi-jinping-tariffs-suspension-details/articleshow/121101031.cmsThe Times of India