Following a trade de-escalation agreement between the United States and China announced on Monday, May 12, the White House released an Executive Order outlining how the temporary tariff suspension will be implemented. The order addresses ad valorem duty rates, tariff classifications, and de minimis thresholds affecting goods imported from China and Hong Kong.

Key Provisions from the May 12 Executive Order:

  1. 90-Day Suspension of Certain Tariffs
    The Executive Order temporarily suspends the additional ad valorem duties listed in Annex I of Executive Order 14257 (and its amendments) for 90 days. In place of the previously imposed rates, the U.S. will apply a reduced 10% ad valorem duty on imports from China, including Hong Kong and Macau. This 10% reflects a 24-point reduction from the original tariff.

  2. Tariff Adjustments Effective May 14
    Starting 12:01 a.m. ET on May 14, 2025, all covered goods entering the U.S. will be subject to the adjusted 10% duty. This applies to goods entering for consumption or withdrawn from warehouse, and honors all applicable exceptions as outlined in previous executive orders and memoranda.

Additionally, duties imposed by Executive Orders 14259 and 14266 will be removed, further reducing the effective rates on Chinese imports.

  1. Harmonized Tariff Schedule Modifications
    To align with the updated trade agreement, the Harmonized Tariff Schedule of the United States (HTSUS) will be amended as follows:

  • Heading 9903.01.25: Revised article description to exclude items already covered under specific HTSUS headings.

  • Heading 9903.01.63 and related notes: Duty rate reduced from 125% to 34%.

  • These revised provisions, including notes under subchapter III of chapter 99, will also be suspended for 90 days beginning May 14.

  1. Reduction in De Minimis Tariff Rates
    The order also reduces tariffs on low-value (de minimis) shipments from China:

  • The ad valorem duty on low-value imports, originally set at 120%, is reduced to 54%.

  • The flat rate of $100 per postal item remains in effect and will not increase to $200 on June 1 as previously scheduled.

  • The HTSUS will be amended to reflect these changes and to remove language that would have implemented the higher rate beginning in June.

 

 

Source: NCBFAA