Tariff Talk

With a vision of achieving balanced trade with China, President Trump has made the long-awaited announcement that many importers have been hoping for—a 90-day reprieve from all inbound tariffs, which in some cases had exceeded 170%. This move presents new opportunities for importers preparing for Q3 holiday orders and year-end commitments.

By May 14, both nations are expected to implement processes to reduce the current 125% reciprocal tariffs to a baseline rate of 10%. These adjustments are in addition to existing general tariffs, Section 301 and 232 tariffs, and the 20% IEEPA tariff related to fentanyl. According to the official memo, the additional tariffs imposed on Chinese goods after April 2 will be removed, while all tariffs enacted prior to that date—including those tied to the fentanyl national emergency—will remain in place.

The White House fact sheet notes that “both nations agreed to establish a mechanism to continue important discussions about trade and economics,” with the $295.4 billion trade deficit (as of 2024) being a central focus. Other priorities to be addressed during the pause include restoring balance for U.S. workers and taking aggressive action on fentanyl.

OCEANAIR will continue to monitor updates from the White House and U.S. Customs regarding the implementation and timeline of these changes. At this time, no further guidance has been provided on the impact to tariffs already paid or on the status of exclusions.