Dear Customers, Colleagues, and Friends,
We want to update you on a recently announced trade and economic agreement between the People’s Republic of China (PRC) and the Donald J. Trump administration as reflected in the White House fact sheet, “Fact Sheet: President Donald J. Trump Strikes Deal on Economic & Trade Relations With China.”
Key Tariff Change
- The U.S. will lower the tariff imposed under the fentanyl-precursor import measure on Chinese goods from 20% to 10%, effective November 10, 2025.
- During this period, the existing 10% reciprocal tariff on Chinese imports will remain in effect and other section 301/232 tariffs remain in effect.
Broad Trade & Export-Control Implications
- China will suspend retaliatory tariffs on a wide range of U.S. agricultural and food products—including chicken, wheat, soybeans, pork, beef, aquatic products, fruits and vegetables.
- China will also suspend its announced export controls on rare earths, gallium, germanium, antimony, and graphite.
- U.S. Section 301 and other trade-remedy actions (particularly maritime/logistics/shipbuilding investigations) will be paused for the duration, enabling focused bilateral engagement.
What This Means for Your Business
- If you import goods from China that were subject to the 20% “fentanyl-related” tariff, prepare for the reduction to 10% after November 10, 2025.
- While this tariff reduction is meaningful, other duties and fees remain — including standard Most-Favoured-Nation (MFN) duties, Section 301 tariffs, Section 232, and applicable reciprocal tariffs.
- With export-control and rare-earth advantages being relaxed, supply-chain dynamics may shift; assess whether your sourcing strategy should adapt accordingly.
We will continue to track all detailed guidance and will notify you as further regulatory instructions are released. In the meantime, if you have any questions or would like to discuss potential impacts on your shipments or sourcing strategy, our team at Krenz & Hannan is ready to assist.
Sincerely, Your friends at Krenz and Hannan International