London 09:00-12^th May 2025

The USA and China have reached a 90-day agreement on the reduction of reciprocal tariffs by 115%.

The fall will come into effect on Wednesday 14th May 2025.

There has been no movement in the announcement that restores the de minimis for Chinese and/or Hong Kong goods, meaning a 30% reciprocal tariff is still an addition to existing tariffs, increasing the cost of some items by as much as 55% at the border.

Prior to this announcement, China’s reciprocal tariffs were at 125%, while the USA reciprocal tariffs were at 145%

Stock markets in the USA and China have responded well to the news, however the European Chamber of Commerce in China says while it’s “encouraged by the decision, uncertainty remains”.

The USA and China have set out a framework to continue talks in the coming days.