China Announces Suspension of 24 % Additional Tariff on U.S. Imports for One Year

In a major development in global trade relations, China has announced that it will suspend the additional 24 percent tariff it levied on U.S. goods for a one-year period, while maintaining a remaining base duty of 10 percent. The move follows high-level talks between Chinese President Xi Jinping and U.S. President Donald Trump and signals a cautious easing of the tariff-driven trade tensions between the world’s two largest economies

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According to the official statement by China’s State Council Tariff Commission, the suspension takes effect immediately and will last for twelve months. The commission clarified that the 10 percent levy will continue to apply to imports of U.S. goods despite the suspension of the additional 24 percent. 

Background on the Tariff Dispute

Earlier in 2025, China responded to U.S. tariff increases by imposing retaliatory duties on U.S. imports. These counter-measures included the 24 percent additional tariff among other trade restrictions. The current decision to suspend this additional duty follows renewed diplomatic engagement and signals both countries moving toward de-escalation. 

This suspension comes at a time when U.S. exporters and global supply chains have faced considerable uncertainty due to the elevated duties. By reducing the full burdensome mark-up, China’s move offers relief to affected businesses and opens an opportunity for renewed U.S. export momentum. 

Implications for U.S. and Chinese Businesses

For U.S. exporters, the suspension of the extra 24 percent tariff may improve competitiveness of American goods in Chinese markets. More favourable duty treatment could help U.S. agricultural products, industrial goods, and other exports regain traction. Analysts expect improved flows and potentially reduced costs for U.S. suppliers eyeing the Chinese market.

On the Chinese side, retaining the base 10 percent duty means Beijing still retains a lever of trade control, reflecting that the suspension is strategic rather than full liberalisation. Chinese importers will benefit from somewhat lower costs, but the remaining duty means supply-chain and cost considerations remain relevant. 

In addition, this development may improve global business sentiment. With some of the most severe trade-barrier risks receding, companies may revise investment, sourcing and logistics plans. For countries and firms dependent on U.S.-China trade flows, the softer outlook around duties may reduce risk premia.

Risks and Conditions to Monitor

Despite the positive headline, a number of caveats apply. The suspension is time-limited (one year) and does not signal a permanent elimination of the tariff. After the suspension ends, the additional 24 percent could be reinstated unless further agreements are reached. Moreover, the remaining 10 percent duty means U.S. exporters still face a significant tariff hurdle.

Also, trade relations between the two countries are embedded in broader geopolitical and strategic issues. Any deterioration in other areas (exports controls, technology transfer disputes, rare-earths trade) may undermine this tariff pause. Analysts caution that companies should view the suspension as a window of opportunity rather than a long-term guarantee. 

What to Watch Next

• Whether U.S. exporters increase shipments to China thanks to the eased duty burden.
• How China’s domestic importers respond and whether the supply-chain shifts back toward U.S. sources.

• Whether this move leads to further trade negotiations or more structural agreements on tariffs and market access.

• The behaviour of the base 10 percent duty: whether it gets reduced further or remains stable.

Frequently Asked Questions (FAQs)

Q1: What exactly is being suspended by China?
A1: China is suspending the additional 24 percent tariff that it had imposed on U.S. goods, for one year. However, it is keeping in place a base duty of 10 percent on those goods. 

Q2: When does the suspension take effect and how long will it last?
A2: The suspension is effective immediately, as per the announcement, and will last for one year from the date of announcement. 

Q3: Does this removal of the 24 percent duty mean U.S. goods are tariff-free in China now?
A3: No. While the additional 24 percent is suspended, the base 10 percent duty remains in place. So U.S. goods continue to face a tariff, albeit a lower one. 

Q4: Which sectors or types of goods are likely to benefit most from this tariff suspension?
A4: Sectors with significant export exposure to China such as U.S. agriculture (soybeans, corn, wheat, chicken), industrial and machinery goods stand to benefit from improved competitiveness due to lower duty burdens. 

Q5: Is this suspension a permanent resolution to the tariff dispute between the two countries?
A5: No. The suspension is limited to one year and does not guarantee permanent duty removal. The broader trade tensions remain, and other non-tariff issues still loom.

Q6: How might this affect global markets and supply-chains?
A6: The tariff relief may reduce risk and cost burdens for exporters and importers, potentially improving business sentiment and global trade flows. However, companies should remain cautious about timing and the possibility of renewal of duties.