Xinhua News Agency reported that according to the announcement of the Tax Committee under the State Council issued on May 13, China will temporarily suspend 24% of the additional tax rate according to Notice No. 4 of 2025, for an initial term of 90 days, while still retaining the additional tax rate of 10% for related items.
In addition, Beijing has also lifted the adjusted additional tax rate previously applied under the Commission's Notice No. 5 and No. 6, issued on April 9 and 11, respectively. The two packages previously raised the total tax rate on some US imports to 84% and 125% as a response to Washington's countervailing tax policy.
In the announcement, the Tax Committee said that this adjustment is in line with the expectations of manufacturers and consumers in both countries, and contributes to promoting trade exchanges between China and the US as well as supporting the global economy.
This import tax adjustment is considered a positive step in the context of the US-China trade tensions that have lasted for many years.
Previously, the tariff negotiation round in Geneva (Switzerland) on October 10-15, led to a sharp reduction in tariffs between the two countries. The two sides agreed to permanently reduce the counterpart tax rate currently imposed from 125% to 34%.
With the remaining 34% tax, in the next 90 days, the two sides temporarily suspended only 24%. Thus, in the immediate future, the reciprocal tax on the US - medium will be only 10%. However, 20% of the US tariffs were applied to China's tenure of President Donald Trump's unchanged.
Therefore, from May 14, when the trade deal officially takes effect, the total US tax rate on most imports from China will be reduced to 30%, while China's tax rate on US goods will be reduced to 10%.
The partial suspension of additional tariffs shows that China may be looking to recover trade relations and stabilize its domestic economy, which was hit by previous tariffs. At the same time, this step also sends a positive signal to the market, especially for manufacturers and businesses that want stability.
Meanwhile, the US may also be facing pressure to increase taxes, especially as the global economy is struggling with difficulties related to inflation and supply chains.
Experts say that although it is a gesture of reconciliation, this decision also needs to be viewed positively in the broader context of ongoing negotiations between the two countries.
