Update: U.S. Tariffs on Chinese Goods – What the New Trade Deal Means

On November 1, 2025, the White House released a Fact Sheet outlining an agreement between President Donald J. Trump and President Xi Jinping on economic and trade relations between the United States and China.

The document provides details on tariff adjustments, suspended retaliatory measures, and new commitments by both governments affecting bilateral trade.

Link: https://www.whitehouse.gov/fact-sheets/2025/11/fact-sheet-president-donald-j-trump-strikes-deal-on-economic-and-trade-relations-with-china/

Overview of the Agreement

According to the White House statement, the agreement includes the following measures:

• Tariff Adjustments:
  The United States will reduce the tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) on certain Chinese and Hong Kong-origin goods from 20 percent to 10 percent, effective November 10, 2025.

• Suspension of Retaliatory Tariffs:
  China will suspend all retaliatory tariffs it has imposed since March 4, 2025, in response to U.S. measures.

• Reciprocal Tariff Pause:
  Both countries agreed to suspend reciprocal tariff actions at the 10 percent level through November 10, 2026, covering goods from China, Hong Kong, and Macau.

• Rare Earths and Export Controls:
  China will suspend implementation of its new export licensing requirements for rare-earth minerals, and the two sides will begin discussions on “market-distorting subsidies” in the shipbuilding sector.

• Additional Commitments:
  Both governments reaffirmed cooperation on combating the export of fentanyl and related chemicals, as part of the broader economic agreement.

Current Status of U.S. Tariffs on Chinese Goods

As of November 2025:

• A 10 percent tariff remains in place on a broad list of Chinese-origin goods covered by the IEEPA measures.

• Section 301 tariffs established under previous trade actions remain unchanged at this time.

• Section 232 measures on specific products (e.g., steel, aluminum, and related items) continue to apply independently of this new agreement.

• The temporary tariff reduction and suspension apply specifically to duties assessed under the IEEPA-based actions announced earlier in 2025.

Implications for U.S. Importers and Exporters

Importers of Chinese-origin products should consider the following points based on the White House announcement:

1. Duty Reduction:
   Effective November 10, 2025, eligible products previously subject to a 20 percent rate will now be assessed at 10 percent.

2. Timeline:
   The current tariff pause is in effect through November 10, 2026, after which the measures may be renewed, modified, or expire based on future negotiations.

3. Compliance and Classification:
   Accurate HTSUS classification and country-of-origin documentation remain essential for determining whether imported goods qualify for the adjusted tariff rate.

4. Ongoing Tariffs:
   This agreement does not eliminate existing Section 301 or 232 tariffs; those measures remain subject to their respective legal authorities.

Summary

The November 2025 U.S.–China trade agreement temporarily reduces certain U.S. tariffs on Chinese goods from 20 percent to 10 percent, suspends Chinese retaliatory duties, and establishes a one-year pause on reciprocal tariff measures.

While this represents a short-term easing of trade restrictions, most U.S. tariff programs—including Section 301 and 232 actions—remain in effect. Importers and exporters are advised to confirm current duty rates, maintain accurate classification records, and monitor official publications for regulatory updates.

President Trump has reportedly agreed to an overall 10% reduction of U.S. tariffs on Chinese products following a meeting with Chinese President Xi Jinping in South Korea. During the meeting, China agreed to intensify efforts to crack down on fentanyl production and related exports.

In addition, China has halted its new export licensing plan for rare earth metals.

As reported by International Trade Today (ITT), the Trump administration also agreed to pause U.S. fees imposed on Chinese-built and operated ships calling at U.S. ports, while both countries continue discussions regarding “market-distorting subsidies” in the shipbuilding sector.

J.O. Alvarez, Inc. will continue to monitor official announcements and provide updates once U.S. Customs and Border Protection (CBP) issues implementation guidance.