Northwest Horticultural Council

Country Alerts

U.S. and China Announce Reduction of Tariffs

On May 12, 2025, the White House announced a modification of tariff duties imposed by both the United States and the People’s Republic of China (PRC). The U.S. and PRC jointly announced a reduction of Chinese tariffs related to the series of original tariff announcements dated April 4, April 9, and April 11 that had increased rates by 125 percent on top of existing tariffs and retaliatory tariffs.

The effective date of the agreement is May 14, with an initial agreement period of 90 days.

This brings the total PRC tariff rate on U.S. fresh apples, pears, and sweet cherries to 45 percent for importers who have secured Section 301 exemptions. The tariff rate is 75 percent for those without the Sec. 301 exemption. Fresh fruit imports are also subject to a 9 percent value-added tax.

The PRC’s tariffs break down as such:

• 10 percent – Most Favored Nation (MFN) Rate (1/1/25)
• 15 percent – Section 232 Retaliation (4/2/18)
• 30 percent – Section 301 Retaliation (2/14/20)
• 10 percent – Retaliation (3/10/25)
• 10 percent – MOFCOM Statement (5/14/25)
• -30 percent for 301 Market-Based Exclusion (4/10/25)

Total = 45 percent (or 75 percent without the 301 exemption)

More information can be found in this USDA GAIN Report and on the China page of the NHC Export Manual.

 

Background: The PRC levied an additional 10 percent tariff on U.S. apples, cherries, and pears (along with 737 other products) in response to the United States’ decision to impose a 10 percent tariff on all Chinese imports to other countries, effective March 4, 2025. Goods that were shipped before March 10 and were imported between March 10 and April 12 were not subject to the 10 percent tariff.

On April 4, the PRC announced additional retaliatory tariffs on all U.S. goods, including agricultural products, of 34 percent. On April 9, the PRC announced an additional 50 percent on the current applicable tariff base, bringing the total to 84 percent. On April 11, the PRC increased the retaliatory tariff to 125 percent, which brought the total applied tariff rate on U.S. tree fruit to 160 percent.

 

Posted: May 15, 2025