The U.S. and China have agreed to slash reciprocal trade tariffs by 115% for 90 days.

The new tariffs will come into effect from May 14, 2025, the two countries said in a joint statement.

The U.S. Department of the Treasury temporarily suspended all tariffs imposed since April 2, 2025, except for retaining a 10% tariff on all Chinese imports. The effective tariff on imports from China has decreased from 145% to 10%.

Simultaneously, China also removed all reciprocal tariffs, bringing them down from 125% to 10%.

The existing 20% tariff on Chinese goods relating to fentanyl appears to remain in place, meaning the final tariff rate on Chinese goods will be 30%.

During the pause period, the two countries will establish a mechanism to continue negotiations on bilateral economic and trade relations.

Previously, the U.S. government had paused the modified additional ad valorem duty imposed on several countries, including India. The government had imposed a relatively lower tariff of 26% in India compared to China, brightening possibilities for exports of solar modules by Indian manufacturers.

Over the last two years, the U.S. and China have locked in disputes over tariffs and exports of clean energy products. Against the repeated tariff increases by the U.S., China retaliated with export curbs on graphite used in electric batteries, which had the potential to hurt the American electric vehicle industry.

In December 2024, the United States Trade Representative (USTR) announced that the U.S. will impose a 50% rate on solar wafers and polysilicon and a 25% rate on certain tungsten products originating from China. The USTR report on the statutory review claimed that China engages in harmful trade practices, including forced technology transfer, cyber theft, and industrial espionage, with some of these actions intensifying recently.

In September 2024, the U.S. announced that Chinese-manufactured electric vehicles would carry a 100% tariff and solar cells a 50% tariff—a 25% tariff applied to electric vehicle batteries, critical minerals, aluminum, and steel. A tariff of 50% has also been proposed for polysilicon used in solar modules starting in 2025.

There is, however, no change in the staggering tariffs of up to 3,500% imposed by the U.S. on other leading exporters of solar products. In April, the U.S. Department of Commerce announced its final determinations in the anti-dumping and countervailing duty investigations concerning crystalline silicon photovoltaic cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam.