By RV Industry Association
On May 12, 2025, the White House announced that President Donald Trump reached an agreement with China to reduce China’s tariffs and eliminate retaliation, retain a U.S. baseline tariff on China, and set a path for future discussions to open market access for American exports.
The United States issued the first joint statement on trade in many years with China after successful negotiations over the weekend in Geneva, Switzerland. Both parties affirmed the importance of the critical bilateral economic and trade relationship between both countries and the global economy.
In reaching an agreement, the United States and China will each lower tariffs by 115% while retaining an additional 10% tariff. Other U.S. measures will remain in place.
Both sides will take these actions by May 14, 2025.
CHINESE ACTIONS:
- China will remove the retaliatory tariffs it announced since April 4, 2025, and will also suspend or remove the non-tariff countermeasures taken against the United States since April 2, 2025.
- China will also suspend its initial 34% tariff on the United States announced on April 4, 2025, for 90 days, but will retain a 10% tariff during the period of the pause.
AMERICAN ACTIONS:
- The United States will remove the additional tariffs it imposed on China on April 8 and April 9, 2025, but will retain all duties imposed on China prior to April 2, 2025, including Section 301 tariffs, Section 232 tariffs, tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs.
- The United States will suspend its 34% reciprocal tariff imposed on April 2, 2025, for 90 days, but retain a 10% tariff during the period of the pause.
ONGOING ACTIONS:
When these changes take effect, both nations agreed to establish a mechanism to continue important discussions about trade and economics. China will be represented by He Lifeng, Vice Premier of the State Council. The United States will be represented by Scott Bessent, Secretary of the Treasury, and Jamieson Greer, United States Trade Representative.
NEW CHINA TARIFF STACKING:
On May 14, 2025, the China tariffs will stack as follows:
- 10% reciprocal OR Section 232* (whichever applies depending on the product) + 20% fentanyl + 25%* Section 301 = 55% + existing Most Favored Nation/Normal Trade Relations tariff
* If a Section 232 tariff applies, then the 10% reciprocal tariff will not apply. HTS code lists are specified in the Federal Register.
* Section 301 tariffs are variable, depending on the HTS code and product. Section 301 tariffs currently apply to most Chinese products.
View the White House’s Fact Sheet here. Please contact Samantha Rocci, Director of Federal Affairs at RVIA with questions. For the latest on tariffs by the RVIA, click here.
