China Suspends 24 Percent Tariff on U.S. Imports for One Year: Trade Truce Intensifies

In a significant development for global trade, China announced on November 5, 2025 that it will suspend the additional 24 percent tariff on U.S. goods for one year, while keeping a baseline tariff of 10 percent in place.  This move follows a recent meeting between Chinese President Xi Jinping and U.S. President Donald Trump and signals a cautious easing of tensions between the two largest economies. 

The Chinese state-council tariff commission clarified that the suspension applies immediately and will last twelve months. However, it emphasised that a remaining 10 percent tariff will continue to apply to U.S. goods throughout this period.  The announcement also included a commitment to lift tariffs up to 15 percent on certain U.S. agricultural goods starting November 10.

Background and trade context

Relations between China and the U.S. have been strained by escalating reciprocal tariffs in 2025. Earlier in the year, China imposed additional tariffs reaching 34 percent on U.S. imports in retaliation for U.S. duties. The current measure is part of a broader diplomatic push to stabilise trade and supply-chain disruption risks.

By suspending the extra 24 percent duty, Beijing is signalling willingness to engage in negotiation and de-escalation. The retained 10 percent levy ensures that core trade-protection tools remain in place, indicating caution rather than full liberalisation.

What it means for U.S. exporters and global supply chains

For U.S. exporters, especially in agriculture and industrial goods, the reduction in tariff pressure offers a potential boost. With the extra 24 percent duty paused, U.S. products become more competitive in Chinese markets – at least for the duration of the suspension. The announcement of reduced tariffs on U.S. farm goods further strengthens that opportunity.

For Chinese importers and manufacturers, the move reduces cost pressures and may encourage sourcing from the U.S. However, the remaining 10 percent tariff means U.S. goods will still face a higher hurdle compared with duty-free access.

Globally, the announcement is being interpreted as risk-positive: trade flows may resume more freely, and companies long delayed by tariff uncertainty may advance sourcing or investment decisions. 

Risks and remaining caveats

Despite the positive tone, several key caveats remain. First, the suspension is time-limited to one year; after that, the 24 percent duty could return unless further agreement is reached. Second, the retained 10 percent baseline tariff means that U.S. exporters still face structural cost burdens. Third, broader trade and geopolitical issues (technology export controls, rare-earths restrictions, supply-chain decoupling) remain unresolved. 

Additionally, companies should treat this as an opportunity window, not a permanent resolution. Supply-chain planning based solely on tariff relief risks disruption if tensions reignite.

What to watch next

• Whether U.S. exporters ramp up shipments to China, particularly agricultural and industrial goods.

• Whether Chinese importers redesign supply-chains to favour U.S. sources given lowered tariff burden.

• Whether the U.S. side responds with complementary tariff relief or other trade concessions.

• Whether the one-year suspension leads into deeper structural trade agreement or ends up a short-lived pause.

Frequently Asked Questions (FAQs)

Q1: What exactly is China suspending?
A1: China is suspending the additional 24 percent tariff it had imposed on U.S. goods. The policy is to last for one year beginning immediately. The baseline 10 percent tariff remains in force.

Q2: When does the suspension take effect?
A2: The suspension takes effect immediately as of the announcement on November 5, 2025, and will run for one year unless modified.

Q3: Does this mean U.S. goods enter China duty-free now?
A3: No. U.S. goods will still face a 10 percent tariff. The key change is the removal of the extra 24 percent duty for the duration of the suspension.

Q4: Which sectors stand to benefit most from this tariff decision?
A4: U.S. exporters in agriculture (soybeans, corn, wheat, chicken) and industrial goods are likely the biggest beneficiaries, given previously high duty burdens and the announcement of additional tariff relief on some agricultural items. 

Q5: Is this a permanent trade deal between China and the U.S.?
A5: No. The suspension is explicitly time-limited to one year. It is a tactical move rather than a comprehensive trade deal. Further negotiation will determine if tariffs are lowered further or reinstated.

Q6: Should companies immediately change their supply-chain strategy based on this announcement?
A6: Companies should review strategies and consider incremental adjustments, but avoid full-scale overhaul based solely on this announcement. The one-year timeframe and remaining tariff risk mean a cautious approach is wise.