US China Tariff Agreement: Full Breakdown and What It Means for Your eCommerce Business

US China Tariffs have long created uncertainty for global trade, especially since the start of the Trump-era policies. Over the years, businesses have dealt with shifting regulations, retaliations, and rising costs. But now, it seems we’re finally hitting the pause button.

On May 14, the US and China jointly announced a new trade agreement that temporarily eases some of the steepest tariffs imposed in recent years—offering a rare window of relief for eCommerce businesses relying on Chinese suppliers.

Here’s what the agreement says, and more importantly, what it means for your store.

Key Takeaways of This Article 

• Both the US and China agreed to suspend the previous tariffs for 90 days.

• 10% duties remain on selected items.

• Non-tariff retaliations may be paused or canceled.

• A long-term trade coordination group has been formed.

• Use HS code tools to check if your products qualify for tariff relief.

Highlights of the US China Tariffs Agreement

This bilateral agreement focuses on reducing tariff pressure, pausing certain retaliatory measures, and laying the groundwork for continued cooperation. Here’s a quick breakdown:

1. Tariff Adjustments

• United States:

  • Overall tariffs on Chinese goods will be temporarily reduced from 145% to 30%.

  • Applies selectively and will remain in effect for 90 days, subject to further negotiations.

• China:

  • Tariffs on American imports will be reduced from 125% to 10%.

  • Mirrors the US’s 90-day suspension and is contingent on continued progress.

2. Tariff Rollbacks

• Both sides will cancel two sets of previously imposed tariffs, announced through administrative orders.

3. Non-Tariff Measures

• China will pause or cancel anti-dumping and countervailing duty measures on certain US products, offering relief for American exporters.

4. Bilateral Dialogue Mechanism

• A regular negotiation mechanism will be established to avoid future escalations.

5. Timeline

• All commitments are expected to be fully implemented by May 14, 2025.

What This Means for Your eCommerce Business

For dropshippers and eCommerce sellers working with Chinese suppliers, this temporary easing could mean:

• Lower import costs for selected products.

• Improved shipping timelines as customs inspections ease.

• A more predictable sourcing environment over the next 90 days.

However, this is not a permanent solution. The 90-day suspension window means you need to act fast and review your product categories, especially if you’re in the electronics, home goods, or apparel niches which are often hit hardest by tariffs.

HyperSKU’s Take: Take Advantage of the 90-Day Window

To make the most out of this opportunity, HyperSKU recommends:

Check if Your Products Are Affected

Tariff relief may not apply to all categories. Some products will still face a 10% duty. That’s why it’s critical to check the HS code (Harmonized System Code) of your product to determine tariff impact.

Prepare for the 90-Day Window

This is not a permanent rollback—it’s a temporary window to evaluate costs, update pricing, and potentially shift product strategy.

Monitor Policy Updates

The current measures are due for completion or reevaluation by May 14, 2025. Stay informed by subscribing to trade update alerts or checking the official announcements from USTR and China’s Ministry of Commerce.

Final Thoughts

While this agreement signals a more collaborative tone between the US and China, the tariff environment remains subject to change, especially with upcoming elections and shifting trade strategies.

For eCommerce sellers, this is a strategic moment to reassess your supply chain, reduce costs, and optimize logistics.

FAQ: US China Tariffs & eCommerce

Q: Will this affect all product categories?
A: No. The tariff relief applies selectively. You’ll need to check your product’s HS code to confirm whether it qualifies for the temporary suspension.

Q: Is this a permanent change?
A: No, it’s a temporary suspension. The tariff reductions are valid for 90 days only, as part of the joint US-China trade agreement. Further updates or extensions may follow depending on future negotiations.

Q: How can I stay compliant with the tariff changes?
A: Use HS code lookup tools, work with reliable freight forwarders, and regularly monitor updates from the USTR (United States Trade Representative).
If you have any further questions, our dedicated agents are here to help.