Where Things Stand After the August 2025 Extension
The U.S.–China trade relationship continues to be one of the most closely watched dynamics in global commerce. On August 11, 2025, the White House announced a new 90-day extension of the current tariff truce, preventing a return to the historically high tariff levels imposed earlier this year. For importers, exporters, and supply chain managers, understanding the latest rules is critical to navigating costs and compliance in the months ahead.
A Look Back: How Tariffs Escalated in 2025
The year began with escalating tensions. In April 2025, the U.S. dramatically increased tariffs on Chinese imports, ratcheting up rates from an initial 34%, to 84%, to 125%, and finally to an unprecedented 145% on certain goods. These moves were justified under the administration’s policy of reciprocal tariff enforcement, designed to pressure China into addressing trade imbalances and fentanyl trafficking concerns.
China quickly responded by imposing retaliatory tariffs of its own on a wide range of U.S. exports, hitting American agriculture, manufacturing, and consumer products particularly hard. The back-and-forth triggered significant disruptions in global supply chains, with companies scrambling to adjust sourcing strategies and manage spiraling costs.
The May Breakthrough: A Temporary Reduction
By May 2025, negotiations yielded a major breakthrough. Both sides agreed to lower their tariffs to more sustainable levels:
The U.S. reduced its tariff to 10%, but kept in place an additional 20% “fentanyl enforcement tariff,” bringing the total effective tariff rate on Chinese goods to 30%.
China reduced its retaliatory tariff to 10% on U.S. goods.
This détente helped stabilize trade flows, giving businesses temporary relief and opening the door for continued talks.
The August 2025 Extension: 90 More Days of Stability
On August 11, 2025, President Trump signed an executive order extending the tariff suspension for another 90 days, meaning the current rates will remain in place until at least November 10, 2025. This move was welcomed by businesses that rely heavily on imports from China during the holiday season, as it prevents sudden cost increases at a time when consumer demand peaks.
The White House framed the decision as a “stability measure” that protects U.S. businesses while negotiations continue. U.S. Treasury Secretary Scott Bessent echoed this sentiment, calling recent talks with China “very productive” and noting that both sides are “very happy” with the current arrangement.
Current Tariff Rates
Here’s where the numbers stand today:
U.S. Tariffs on China: 30% total (10% reciprocal tariff + 20% fentanyl enforcement tariff).
China Tariffs on U.S. Goods: 10% flat rate.
These levels are dramatically lower than the 145% spike seen in April, but they are still higher than pre-2025 tariffs.
For now, importers and exporters are advised to:
Closely monitor White House and CBP announcements.
Evaluate landed cost calculations under the current 30% tariff structure.
Consider diversification of sourcing in case tariffs rise again in November.
Build tariff exposure into forward contracts and pricing strategies.