Email
Linkedin
Facebook
Twitter
Copy Link
Loading...
Timely insights from the Economy, Strategy & Finance Center
The Administration announced a 90-day trade truce between the US and China on Monday, May 12, after parties met in Switzerland over the weekend. Both countries agreed to lower tariffs by 115 ppts while bilateral trade negotiations continue. This will reset the tariff rates to 30% for Chinese goods coming into the US, and 10% for US goods entering China. US sectoral tariffs, such as those on steel and automotive parts, remain unchanged, as do Chinese retaliatory tariffs (such as on US agricultural products) that it imposed following the initial US 20% US (fentanyl-related) tariffs.
Why it matters: The US imported $439 billion in goods from China in 2024, more than any other economy except for Mexico. Tariff rates between US and China had escalated to well above 100% following April 2’s “Liberation Day” announcement.
These levels dramatically slowed trade between the two countries, with the Ports of Los Angeles and Long Beach seeing a 44% drop in docked vessels the week of May 4, compared to the same week last year. This low level of US-China shipping, unseen since the COVID-19 pandemic, would have resulted in consumer goods shortages if it persisted. Companies—particularly manufacturers that use Chinese components and those in the transportation sector—would have also been severely impacted, with business
Members of The Conference Board get exclusive access to Trusted Insights for What’s Ahead® through publications, Conferences and events, webcasts, podcasts, data & analysis, and Member Communities.
Stockpiling Crushes Q1 GDP, Details Show Solid Growth
April 30, 2025
Charts
The proliferation of easy-to-use generative AI requires that policymakers and business leaders each play an important role.
LEARN MORE
Charts
A hyperpolarized environment, diminished trust in our nation’s leaders.
LEARN MORE
IN THE NEWS
Erin McLaughlin on Tariff Policy
April 07, 2025
IN THE NEWS
Erin McLaughlin on Reshoring Factors
April 05, 2025
IN THE NEWS
Erin McLaughlin on US Reshoring
April 02, 2025
IN THE NEWS
Erin McLaughlin: How policy uncertainty may exacerbate infrastructure chall…
March 19, 2025
IN THE NEWS
Erin McLaughlin discusses the latest on tariff policy
March 14, 2025
IN THE NEWS
Alex Heil: Tariff uncertainty weighs on consumers, markets
March 10, 2025
