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U.S.-China Trade Deal Marks First Tariff Reduction Under IEEPA Program


Vessel moving cargo
Vessel moving cargo

We have an important update from the U.S. trade front that may have direct relevance for your cost structure and planning for imports from China. On November 1, 2025, the Donald J. Trump Administration released a Fact Sheet titled “President Donald J. Trump Strikes Deal on Economic and Trade Relations with China”, which outlines a new agreement between the United States and People’s Republic of China.

 

  • RECIPROCAL TARIFF: The deal calls for the suspension of certain U.S. responsive actions against China for one year, beginning November 10, 2025; implying the Reciprocal Tariff will remain at 10% without increasing (9903.01.25).

  • IEEPA FENTANYL TARIFF RDUCTION: It also includes reductions in specific tariff rates, notably lowering the IEPPA Fentanyl Tariff rate from 20% to 10%.

  • TIMELINE: Importantly, the effective date of November 10 is not yet clarified. It is unclear whether the “November 10” bar applies based on departure date, arrival date, entry date, or other logistics triggers.

  • Accordingly, while this development signals positive movement and may allow cost savings, we strongly recommend you not assume automatic pass-through without verifying shipment timing and classification.

 

What you should do now:

 

  1. Review upcoming shipments from China scheduled around the November window.

  2. Monitor for additional guidance from U.S. Customs and United States Trade Representative (USTR) or U.S. Customs and Border Protection (CBP) regarding applicability (e.g., date of export vs date of arrival). We will notify you as soon as further details are published.

  3. Update your cost-forecasting models to incorporate a potential shift from 20% to 10% tariff, but factor in uncertainty around implementation.

  4. Once further guidance is issued, we will send a supplemental update with our analysis of how the change affects categories of goods, lead-times and cost-flows.

 

 

In the current environment of tight margins, shifting tariffs can directly impact landed cost, inventory decisions, and routing strategies.

 

We will continue to monitor developments very closely — and once CBP/USTR issue detailed implementation guidance, we will issue a client-briefing sheet with actionable steps you can add to your internal procedures.

 

Thank you for your continued trust in us. If you have immediate questions, feel free to contact us at management@fleischer-chb.com or 310-671-6402.

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