The United States and China have announced a new bilateral trade agreement following high-level negotiations in Geneva. This marks the first joint trade statement between the two countries in years and introduces major changes to tariffs and trade policy that could directly affect importers, exporters, and global supply chains.
Key Highlights of the Agreement
- Tariff Reductions: Both the U.S. and China will reduce tariffs by 115% while maintaining a 10% baseline tariff on a broad range of goods. These changes are scheduled to take effect by May 14, 2025.
- Suspension of 34% Tariffs: Each side will suspend the 34% tariffs imposed in early April 2025 for a 90-day period. These tariffs are not eliminated, only paused, and the 10% rate will remain during the suspension.
- Removal of Retaliatory Measures: China has agreed to remove or suspend all retaliatory tariffs and non-tariff barriers announced since early April 2025.
- Continued U.S. Tariffs: The U.S. will maintain existing tariffs imposed before April 2, 2025, including Section 301 and fentanyl-related tariffs.
- Ongoing Trade Talks: A formal mechanism will be established for continued discussion on trade and economic policy, with designated representatives from both governments.
For full details, read the official White House announcement:
White House Fact Sheet – President Donald J. Trump Secures a Historic Trade Win for the United States
What It Means for Duty Drawback
Despite headline reductions, tariffs are far from eliminated — and that keeps duty drawback firmly in play as a cost-saving opportunity for U.S. businesses.
Companies may still be eligible to recover duties paid on:
- The 10% baseline tariffs that remain in effect
- The 34% tariffs imposed in early April, which may still qualify if duties were paid before the suspension
- Pre-existing drawback-eligible tariffs, including Section 301
If your company is importing goods from China and later exporting or destroying them, now is the time to review your records and ensure you’re positioned to recover all eligible duties under this evolving tariff structure.
Our Guidance
At J.M. Rodgers, we are closely monitoring these policy changes and how they may affect your duty recovery strategy. Our proprietary systems and expert drawback teams can help you navigate the new agreement and maximize your refund potential.
Contact us today to discuss your tariff exposure and ensure your drawback program is aligned with the latest developments.
