Latest on Tariffs: U.S., China Reduce Tariffs & Promise Further Talks, US-UK Deal Announced
After several weeks of tariffs over 100% imposed by both countries, the U.S. and Chinese governments issued a Joint Statement on May 12 announcing a bilateral agreement. After a weekend of negotiations in Geneva, Switzerland the two sides announced a bilateral reduction in tariffs of 115% for 90 days. The tariff on Chinese imports will now be 55%, unless the imports face duties on specific products like steel, aluminum, or auto parts. This total is based on a 25% tariff imposed on China during the first Trump term, a 20% tariff responding to the fentanyl supply chain, and a 10% reciprocal tariff. U.S. exports to China will face a 10% tariff. These rates will hold for 90 days, or August 12, 2025. U.S. Customs and Border Protection published an official notification implementing this change on May 13.
Separately, the White House announced an agreement with the United Kingdom on May 8 that would maintain the UK’s reciprocal tariff at 10% and allow 100,000 UK-manufactured cars to enter the U.S. at 10% duty. Any additional vehicles would face the 25% currently imposed on foreign cars. The two countries will work to create an alternative arrangement on steel and aluminum tariffs and work to create a new trading union on these materials and the White House said the UK will avoid any tariffs on aircraft currently under consideration.
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Key Senator Blasts New Aircraft Tariff Investigation
Senator Maria Cantwell, (D-WA), a longtime free trade advocate, criticized the May 13 announcement of an investigation on imported civil aircraft and jet engines as harmful to her constituent Boeing as well as its rival, Airbus. In a statement to International Trade Today, Cantwell said “I’m not sure what the heck that’s about. We certainly don’t need to be making aerospace more expensive now,” she said. “This doesn’t make sense.”
Cantwell, the Ranking Member of the Senate Commerce Committee, which has oversight of the aviation industry and the Federal Aviation Administration, noted that Boeing will need imported parts to make the planes promised in recent White House trade announcements, including a recent announcement that Qatar Airlines would purchase 160 Boeing aircraft, with delivery beginning after 2030. These sales will require imports from Canada, Europe, Australia, India, Japan and the United Kingdom.
ACMA members with views on this investigation may file comments through the official docket for this investigation until June 3, 2025. Please contact Dan Neumann with any questions.