Tariff cut-good news!
The Joint Statement of the U.S.-China Geneva Economic and Trade Talks – The Government of the People’s Republic of China (“China”) and the Government of the United States of America (“United States”).
Recognize the importance of bilateral economic and trade relations for both countries and the global economy;
Recognize the importance of a sustainable, long-term, and mutually beneficial bilateral economic and trade relationship;
In light of recent discussions between the Parties, believe that continued consultations will help to address the concerns of the Parties in the area of trade and commerce;
To continue to move forward in a spirit of mutual openness, ongoing communication, cooperation and mutual respect;
The Parties commit to the following initiatives to be undertaken by May 14, 2025
The United States will
- modify the ad valorem tariffs on Chinese goods (including goods from the Hong Kong Special Administrative Region and the Macao Special Administrative Region) set forth in Executive Order No. 14257 of April 2, 2025, with 24 percent of the tariffs suspended for an initial period of 90 days while retaining the remaining 10 percent of the tariffs on those goods as set forth in the Executive Order;
- cancel the tariffs on these goods under April 8, 2025 Executive Order No. 14259, dated April 8, 2025, and Executive Order No. 14266, dated April 9, 2025, the tariff increase on these goods.
China will
- accordingly modify the ad valorem tariffs imposed on U.S. goods under Tax Commission Notice No. 4 of 2025, with 24 percent of the tariffs suspended for an initial 90-day period, while retaining the remaining 10 percent of the tariffs imposed on these goods and canceling the tariffs imposed on these goods pursuant to Tax Commission Notices Nos. 5 and 6 of 2025;
- take the necessary measures to suspend or cancel the tariffs imposed on these goods as of April 2, 2025, non-tariff countermeasures against the United States.
Following these initiatives, the two sides will establish a mechanism to continue consultations on economic and trade relations. The Chinese side will be represented by Vice Premier He Lifeng, and the U.S. side will be represented by Secretary of the Treasury Scott Besant and U.S. Trade Representative Jamison Greer. Consultations may be held in China, the United States, or a third country as agreed by the parties. As needed, the two sides may conduct working-level consultations on relevant economic and trade issues.
With the recent tariff reductions, a new era of opportunity has dawned.
Businesses, especially wholesalers and retailers, stand to gain immensely from these changes. Take the furniture industry, for example. With the reduction in import duties, “buying low-tariff, affordable furniture from China” is now a more viable and profitable option. Wholesalers can source quality furniture from China at a lower cost, thereby offering more competitive prices in the domestic market. This not only attracts more customers, but also improves profit margins.
Now, with tariff reductions, companies are able to expand their product lines and offer more choices to their customers.
In addition, tariff reductions are not limited to specific industries. From consumer electronics to home décor, textiles to toys, the cost of importing Chinese products has dropped significantly. This means that businesses now have access to a wider range of quality goods at more affordable prices, giving them a competitive edge in the marketplace.
Consumers have a lot to look forward to as well. Tariff reductions are likely to lead to lower prices for many consumer goods. This means that shoppers can expect to get their favorite made-in-China products at lower prices in stores and online. Whether it’s trendy clothing, advanced electronics, or unique home décor items, tariff reductions will make these products more accessible and affordable.
So if you’re in the business of importing products, now is the time to act. Capitalize on the golden opportunity presented by the “China Import Tariff Reduction” and the “U.S. Tariff Reduction by 2025”.