On May 12, 2025, the White House issued an Executive Order that formalizes the tariff suspension announced in the U.S.–China Joint Statement released one day prior. The new order provides guidance for implementing the 90-day tariff suspension that grants relief for U.S. importers sourcing goods from China, Hong Kong, and Macau.
NEW EXECUTIVE ORDER CONFIRMS SCOPE OF TEMPORARY CHINA TARIFF REDUCTION
Effective May 14, 2025, at 12:01 a.m. EDT, the Executive Order enacts the following:
- Suspends 24 percentage points of the additional tariffs imposed under Executive Order 14257
- Retains a 10% ad valorem baseline duty on covered Chinese-origin goods
- Removes added duties introduced under Executive Orders 14259 and 14266
- Reduces low-value import tariffs from 120% to 54%, maintaining the existing $100 postal item cap
- Modifies HTSUS tariff headings to reflect these changes, including a 90-day suspension of several subheadings and notes
These actions align with China’s commitments under the newly signed Geneva trade framework.
DE MINIMIS: EXECUTIVE ORDER REDUCES DUTIES ON LOW-VALUE POSTAL IMPORTS
The Executive Order also amends prior tariff actions targeting de minimis imports tied to synthetic opioid supply chain enforcement. Specifically, it reduces the applicable duty from 120% to 54% on qualifying low-value postal shipments from China and retains the $100 per-item duty cap, cancelling the previously scheduled increase to $200 on June 1, 2025. These changes are intended to preserve the effectiveness of the broader tariff rollback and are reflected in corresponding updates to the Harmonized Tariff Schedule (HTSUS).
COMPLIANCE IS NOT AUTOMATIC
As with all tariff suspensions, U.S. importers must use updated HTSUS language. Incorrect or outdated classifications could result in overpayment, delays, or compliance issues with U.S. Customs and Border Protection (CBP).
The Executive Order does not apply retroactively, and duties imposed under other trade programs, including Section 232 or Section 301, remain unchanged.
NEW U.S.-CHINA TRADE FRAMEWORK: NEXT STEPS FOR U.S. IMPORTERS
With the 90-day suspension taking effect on May 14, importers should:
- Review HTS codes and tariff notes for each covered product
- Partner with a trusted customs broker to apply the revised 10% duty rate accurately
- Prioritize high-volume or high-impact shipments that qualify for relief during the suspension period
- Audit low-value imports to capture potential savings under the 54% duty provision
- Track ongoing negotiations in case of early termination, extension, or policy changes
- Register to attend Green Worldwide Shipping’s free Webinar: Tariff Un-Stacking, How to Look Up Tariffs, Bonded Warehouses & FTZS
Stay up-to-date on freight news with Green’s Weekly Freight Market Update by following us on LinkedIn. For continuous updates, make sure to check out our website at greenworldwide.com.
