The White House announced on Monday that the US and China will each lower tariffs by 115% while retaining an additional 10% tariff as part of a 90-day suspension. Other US measures will remain in place – including the removal of the de minimis exemption. That means US shoppers will continue to pay duties on small packages sent directly to them from China even when they are valued at $800 or less, whereas prior to May 2nd, they did not have to.
The timing is noteworthy, since the suspension helps ensure US retailers will be able to import products from China through the summer to be able to stock shelves during the all-important 4th-quarter holiday shopping season without the triple-digit tariffs currently in place, though the tariffs remain higher than before the current trade war of 2025.
Brett Banner, Senior Vice President at ecommerce solution PriceSpider, agrees suspension of the 145% tariff comes at a critical moment. “Brands now have a new (but narrow) window to bring in goods and protect margins ahead of the holiday season. We’re already seeing prices creep up, and once they rise, it’s tough to pull them back down.”
The administration provided the following information about detailed actions the US and China will take by May 14th in a post on Monday:
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 it 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.
National Retail Federation (NRF) CEO Matthew Shay said in a statement May 12th that he applauded the US and China and called the temporary pause
“a critical first step to provide some short-term relief for retailers and other businesses that are in the midst of ordering merchandise for the winter holiday season.”
NRF’s Shay added that, “Over the long term, this lays the foundation for substantial progress in achieving truly fair and balanced trade relationships with both China and our other trade partners around the world,” and he urged the administration and China to continue discussions to “address the ongoing issues, work to remove the remaining national security tariffs, and provide long-term stability between the two largest global economies.”
The temporary nature of the tariff deal announced today leaves continued uncertainty for logistics and fulfillment services, and merchants are likely scrambling to determine their next moves.