After giving companies that import or sell products manufactured in China a month to begin fundamentally altering their business models, the U.S. administration continued the erratic moves that have whipsawed the game and merch businesses (see "Erratic U.S. Trade Policy") by temporarily reducing taxes on imports from China from 145% to 30%, for 90 days.
In a joint statement, the governments of the U.S. and China announced that the U.S. would suspend 115% of its tariffs, maintaining a 30% import tax on most goods from China, for 90 days, and China would cut its tariff rate on U.S. goods to 10% for the same period. The countries also pledged to continue "discussions about economic and trade relations."
While the 30% import tax on goods from China is higher than at any time in living memory, it's enough less than 145% that some companies that had manufacturing paused or were holding manufactured goods in China (see "Cephalofair Games Stranded" and "The Op May Send Containers Back") may try to move product to the U.S. in the 90-day window. If so, the next few weeks will see much lower import arrivals in the U.S., reflecting the reduction in shipments over the past month; followed by a rush of ships trying to get product into the U.S.
The news is positive, but leaves a high import tax level on imports from China, and a lot of uncertainty, as tariff rates have now changed several times just in the last 45 days.

On a Temporary Basis
Posted by Milton Griepp on May 13, 2025 @ 2:09 am CT

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