As of May 2025, the U.S. and China have agreed to a 90-day tariff reduction: U.S. tariffs on Chinese goods drop to 30%, while China’s fall to 10%, with 20% of U.S. levies targeting Chinese fentanyl precursors. These “reciprocal tariffs” aim to address trade deficits and reshore manufacturing per Trump’s agenda. Sector-specific duties persist on autos, steel, and pharmaceuticals, alongside tightened de minimis rules for small imports. While the deal temporarily eases tensions, concerns linger over inflation, supply chain disruptions, and global trade fragmentation. Negotiations remain volatile, with outcomes poised to reshape U.S.-China economic relations and ripple through the global economy.
