- Tariff Adjustments Between US and China: On May 12, 2025, the US and China agreed to revise their additional ad valorem duties, suspending 24 percentage points of the duty rate for 90 days while maintaining a 10% rate, effectively lowering the US tariff on Chinese goods to a baseline of 30%.
- China’s Reciprocal Actions: In response, China will also suspend 24 percentage points of its additional ad valorem duty on US goods for 90 days while retaining a 10% rate, alongside the elimination of certain modified duties and non-tariff countermeasures enacted against the US since April 2025.
- US National Security Investigation: Separately, the US Department of Commerce has initiated a public comment request regarding a national security investigation into the imports of commercial aircraft and jet engines under Section 232 of the Trade Expansion Act of 1962, highlighting potential implications for US national security.
Source EY
