Decreased 10% Reciprocal Tariff on China Begins May 14; No Retroactivity
The reduction of the reciprocal tariff on China from 125% to 10% will take effect at 12:01 a.m. ET on May 14, said President Donald Trump in an executive order. The decrease will not be retroactive.
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Effective May 14, the tariff rate applicable to subheading 9903.01.63 will go back to its original 34%, but that subheading will be suspended for a period of 90 days. Until then, subheading 9903.01.25, which provides for 10% reciprocal tariffs on almost all countries, will be in effect for China.
The order also modifies tariff treatment for postal packages. Effective May 14, the ad valorem rate that carriers may pay per package will drop to 54%. While the $100 that carriers may pay per package in lieu of the ad valorem rate won’t change, the planned increase to $200 to June 1 will no longer take place.