U.S. and China Agree to Lower Certain Reciprocal Tariffs – Auto Tariffs Remain Unchanged
The governments of the United States and China released a joint statement outlining actions that the parties agreed to take and implement by May 14, 2025.
The U.S. government agreed to lower, to 10 percent, the tariff on most Chinese imports that the U.S. government initiated on April 2. When that tariff was announced, goods from China became subject to an additional 34 percent tariff, and that rate was subsequently raised to 125 percent. A pre-existing 20 percent tariff on imports from China will remain in effect, making the effective tariff rate for most Chinese imports 30 percent.
This change does not impact the tariff rate on assembled vehicles and automotive parts. Such products produced in all countries - including China but excluding Canada and Mexico - are subject to a 25 percent tariff. These products are not subject to the reciprocal tariffs. Therefore, assembled vehicles and automotive parts imported from China will continue to be subject to a 45 percent tariff. Furthermore, electric vehicles imported from China will remain subject to a 145 percent tariff.
In exchange for lowering the effective tariff rate for most goods to 30 percent, the Chinese government agreed to reduce its retaliatory tariffs on imports from the United States from 115 percent to 10 percent.
The tariff reductions to which the two governments agreed are temporary and will expire after 90 days. This temporary tariff reduction is meant to demonstrate good will and provide negotiators time to negotiate a more permanent deal on trade relations between the two countries.