China Lowers Tariffs on U.S. Goods from 125% to 10%... "Non-Tariff Retaliation to Be Canceled Soon"

Implementation Begins on May 14, Eastern Time
Measures in Accordance with Geneva Agreement
U.S. Lowers Tariff Rate on Small Parcels

On May 14, China, which had agreed to a tariff war truce with the United States, reduced the additional tariff rate on U.S. imports from 125% to 10%.

Starting at 12:01 p.m. on this day (12:01 a.m. Eastern Time, May 14), China suspended the application of 91 percentage points out of the previous 125% additional tariff rate on U.S. goods, and decided to temporarily halt the implementation of 24 percentage points out of the remaining 34 percentage points for 90 days.

This move follows the agreement reached between the United States and China on May 12 in Geneva, Switzerland, to lower tariffs.

According to the joint statement, both countries agreed to cancel 91 percentage points of the additional tariffs imposed on each other's imports and to defer 24 percentage points for 90 days.

As a result, China's additional tariff rate on U.S. goods has been lowered to 10%. The United States, meanwhile, has retained a 20% tariff related to synthetic opioid fentanyl, which was imposed in February and March of this year at 10% each. Therefore, the total additional tariff rate imposed on Chinese goods since the inauguration of President Donald Trump now stands at 30%.

Both countries agreed to implement the measures related to the joint statement by May 14. In addition, they decided to continue follow-up negotiations.

The White House announced that, in addition to the overall reduction of tariffs on Chinese imports, the tariff rate on small parcels from China valued at less than $800 (approximately 1.14 million KRW) would be reduced from 120% to 54% starting on this day.

The Chinese Customs Tariff Commission stated in its tariff reduction announcement the previous day, "The significant reduction of tariffs by both China and the United States meets the expectations of producers and consumers in both countries, and is beneficial to economic exchanges between China and the United States as well as to the global economy."

China also decided to abolish various non-tariff retaliatory measures against the United States. China Central Television (CCTV) reported, "Other non-tariff countermeasures in response to U.S. tariff increases since April 2 will soon be correspondingly suspended or canceled by relevant Chinese authorities."