U.S.-China Trade Truce Opens 90-Day Window for Buyers—Act Now to Avoid Tariff Hikes

In a surprise move, the U.S. and China announced a 90-day tariff pause, slashing duties on hundreds of imported goods. The temporary truce, effective May 14, offers American businesses a rare chance to cut costs before rates potentially surge again in August.

Key Changes in Tariffs

- U.S. tariffs on Chinese goods dropped from 145% to 30%—a massive 115-point reduction.

- China retaliatory tariffs fell from 125% to 10%, easing costs for dual-trade industries.

- Small e-commerce parcels (sub-$800 shipments) saw duties cut from 120% to 54%, benefiting platforms like Temu and Shein.

Why This Is a Critical Opportunity

1. **Deadline Looms**: The truce expires **mid-August 2025**, with tariffs set to rebound to **34% (U.S.) and 54% (China)** if no deal is reached.

2. **Supply Chain Rush**: Major retailers (Walmart, Amazon, Home Depot) are **stockpiling inventory** ahead of back-to-school and holiday seasons.

3. **Shipping Risks**: Analysts warn of **port congestion** and **container shortages** as demand spikes—early orders avoid delays.

What Buyers Should Do Now

- Lock in lower tariffs by placing orders before July.

- Diversify suppliers where possible—Vietnam, India, and Mexico are gaining trade share.

- Monitor negotiations: The U.S. Treasury will push for long-term "rebalancing," but political tensions remain high.

Expert Insight:

"This is a short-term relief, not a long-term solution," says trade analyst Mark Johnson. "Smart businesses will use this window to secure inventory before costs rise again."

Bottom Line: With just 90 days of reduced tariffs, U.S. importers have a narrow—but crucial—chance to save on purchases. Those who wait risk higher costs and supply chain chaos.

For more updates, follow our trade alerts or contact our sourcing team.