Tariff Truce: Trump and China Strike a New Deal. How Will It Affect Your Import Costs?

In a stunning reversal of years of escalating trade tensions, the White House has announced a major economic and trade deal with China. The agreement, reached between President Trump and President Xi, marks a significant de-escalation, bringing about the first major tariff reductions in recent memory.

For importers who have been navigating a minefield of Section 301 duties and retaliatory tariffs, this is a seismic shift. The narrative is no longer just about mitigation and survival; it' about understanding and seizing new opportunities.

This article breaks down what you need to know about this new "tariff truce" and how it will directly impact your landed costs.

The Core of the Deal: What' Changing?

Based on the official White House announcements, the agreement is multifaceted, but the most immediate impact for importers comes from tariff modifications. Here are the key takeaways:

• 10% Tariff Reduction on Specific Duties: The additional tariff rate imposed to address the synthetic opioid supply chain has been reduced from 20% to 10%, effective November 10, 2025. This directly cuts costs for a specific list of goods previously targeted under this measure.
• Suspension of Heightened Reciprocal Tariffs: The U.S. will continue to suspend the application of heightened reciprocal tariffs on Chinese imports until November 10, 2026. While a base 10% reciprocal tariff remains, the threat of further escalation is off the table for at least a year.
• Extension of Tariff Exclusions: Certain Section 301 tariff exclusions that were set to expire will now be extended until November 10, 2026, providing continued relief for specific products.
• China's Reciprocal Actions: China has committed to suspending its own retaliatory tariffs on a wide range of U.S. goods, particularly agricultural products, and will eliminate export controls on critical minerals like rare earths.

How This Affects Your Bottom Line: A Practical Analysis

While your existing articles on calculating duties remain fundamentally important, the variables in the equation have changed.

1. Immediate Cost Savings for Targeted Goods

The most direct impact is the 10-point reduction on duties related to Executive Order 14195. If your products fall under HTSUS heading 9903.01.24, you will see an immediate decrease in your landed cost.

Old Calculation: Product Value * (Base Duty + 20%)
New Calculation: Product Value * (Base Duty + 10%)
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Potential Savings: 10% of your product's customs value.

It is crucial to verify if your HTS codes are affected by this change. This isn't a blanket reduction; it's a targeted one.

2. Increased Stability and Predictability (For Now)

The suspension of further tariff hikes until late 2026 introduces a level of predictability that has been absent for years. This allows for more confident long-term planning, inventory management, and pricing strategies. You can now build financial models with a lower risk of sudden, politically-driven cost increases.

However, the agreement is conditional. The White House has made it clear that if China fails to meet its commitments (e.g., on agricultural purchases or fentanyl precursors), tariffs could be reinstated. This is a truce, not a permanent peace treaty.

3. The End of De Minimis is Still the Reality

It is critical to remember that this deal does **not** reinstate the $800 De Minimis (Section 321) loophole for most shipments. The shift towards taxing nearly all low-value imports remains the status quo. Therefore, accurate duty calculation on every shipment is still paramount, even if some of the rates are now lower. Your core business process of calculating landed cost cannot be relaxed.

Your Action Plan: 3 Steps to Take Now

The wind has changed. Here’s how to adjust your sails:

1. Audit Your HTS Codes: Immediately review your product catalog. Identify which, if any, of your products are covered by the 10% duty reduction under heading 9903.01.24. This is where your instant savings are.
2. Update Your Costing Models: Adjust your landed cost calculators and spreadsheets to reflect the new, lower duty rate for applicable products. Our Tariff Calculator is being updated to reflect these changes automatically.
3. Re-evaluate Sourcing and Pricing: With a more stable tariff environment, re-evaluate sourcing decisions that were made purely to avoid tariffs. This might also be an opportunity to adjust pricing to either increase margin or pass savings to customers and gain market share.

This new deal represents a significant opportunity for savvy importers. By understanding the nuances of the agreement and acting quickly, you can turn this policy shift into a tangible competitive advantage.