U.S. - China Temporary Tariff Relief Explained Clearly
General
Key takeaways
U.S. tariffs on Chinese goods total approximately 30%.
Chinese tariffs on U.S. goods remain at 10%.
90-day U.S. tariff reduction applies from May 14, 2025.
Section 301 and other tariffs still apply to Chinese imports.
Mercury helps businesses stay compliant and focused on core operations.
US Tariff Cuts on Chinese Goods Outweigh China's: What This Imbalance Means for Your Business
On May 14, 2025, the United States temporarily reduced tariffs on goods produced in China, Hong Kong, and Macau from 125% to 10% for a 90-day period. However, many of these goods are still subject to additional tariffs, such as a 20% opioid-related duty and Section 301 tariffs. In effect, goods from China can face a total tariff burden of approximately 30%.
In contrast, goods produced in the United States and shipped to China are currently subject to only a 10% tariff. This creates a significant imbalance in trade conditions and cost structures for exporters and importers on both sides.
Understanding the Disparity
The reduced U.S. tariff is part of a temporary measure following months of escalating trade actions. From February to April 2025, U.S. executive orders raised the reciprocal tariff from 34% to 125%. The new 10% rate offers short-term relief, but additional duties still apply.
Despite the tariff relief, the cumulative burden on Chinese-origin goods remains three times higher than what U.S. goods face entering China. This discrepancy affects cost modeling and market competitiveness for businesses that rely on cross-border supply chains.
What the 30% Really Means for Importers
The 10% reciprocal tariff applies only to goods imported on or after May 14, 2025. This reduction is temporary and does not affect the existing 20% synthetic opioid-related duty or Section 301 tariffs on Chinese goods.
As a result, many shipments from China still face total tariffs of up to 30%. In contrast, U.S. exporters to China continue to face a flat 10% tariff. Companies must factor this into their financial and logistics planning.
Country of Origin Still Matters
Tariffs are applied based on where the product was made—not where it shipped from. A product made in China but shipped from another country still qualifies as a Chinese-origin good and will incur full U.S. tariffs.
Accurate classification is essential to avoid overpaying or facing regulatory penalties. Businesses should update documentation to reflect true origin details.
Why Now Is Critical
The temporary nature of the U.S. tariff reduction creates a limited window of opportunity. Industries such as biotech, diagnostics, and medical devices—many of which rely on Chinese components—should consider timing imports within this 90-day period.
The contrast in tariff rates between Chinese and U.S. goods may also influence long-term supplier relationships and regional sourcing decisions. Companies that fail to act now may face higher costs once the temporary rate expires.
What Remains Unchanged
Despite the temporary reduction, the following tariffs still apply:
Section 301 tariffs on specific Chinese goods
20% opioid-related duties per Executive Order 14228
De minimis treatment is not available for Chinese-origin goods
This means businesses importing from China may still face a total tariff burden of up to 30%, even during the relief period.
How to Optimize Your Response
To mitigate costs, businesses should:
Audit product classifications
Confirm HS codes and country-of-origin data
Align shipping schedules with the 90-day window
Keep detailed records of all imports during this period
Working with experienced logistics providers is essential to navigating this shifting regulatory environment.
How Mercury Helps You Focus on Your Business
At Mercury, we guide clients through complex regulatory environments. Our support goes beyond shipping—we help businesses in healthcare, biotech, diagnostics, and life sciences optimize their logistics strategies.
Mercury’s NavigentSM platform provides full visibility into your shipments. Our team proactively tracks, troubleshoots, and updates you on every step—ensuring you stay focused on your core operations, not paperwork.
With real-time monitoring, dedicated account support, and over 40 years of experience, we deliver reliability when it matters most.
Let Mercury manage the logistics so your team can focus on what you do best—growing your business.
Executive Orders and Their Impact
EO 14195: Duties for opioid-related Chinese products
EO 14228: Additional 20% duty on Chinese goods
EO 14259: Raised reciprocal duty to 84%
EO 14266: Increased it further to 125%
EO May 12, 2025: Reduced reciprocal tariff to 10% for 90 days
Plan Now for Long-Term Impact
The current tariff imbalance provides a moment of clarity in an uncertain trade landscape. U.S. companies importing from China must act swiftly to take advantage of temporary cost reductions while remaining aware of continuing duties.
Meanwhile, exporters to China enjoy a more favorable environment—with only a 10% tariff applied to U.S.-origin goods.
No matter which side of the trade you're on, planning, compliance, and agility are key. Mercury provides the tools, platform, and expertise to help you navigate with confidence.
Contact Mercury today and take control of your global shipping strategy.
