After announcing and then pausing the implementation of wide-ranging reciprocal tariffs last month, the Trump Administration has recently taken notable steps aimed at recalibrating and improving U.S. trading relationships. First, the United States and China have agreed to roll back most tariffs for 90 days, marking a de-escalation in a trade conflict that had sharply intensified in recent months. Second, the United States and the United Kingdom have released a framework for a bilateral trade agreement that outlines sector-specific tariff adjustments, regulatory cooperation, and mutual market access commitments. Although neither action constitutes a final agreement, both signal a meaningful shift in U.S. trade strategy as the Trump Administration continues bilateral negotiations with U.S. trading partners throughout the world.
A. 90-Day Roll Back of Most Chinese Tariffs
On May 12, 2025, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer announced an agreement with Chinese trade negotiators to roll back most of the tariffs that have been imposed in recent months by both countries. In particular, the countries agreed to the following key terms:
- The United States will reduce tariffs on most Chinese imports to 30 percent (consisting of a 10 percent baseline tariff and a 20 percent opioid-related tariff), down from 145 percent. The previously announced exceptions to the baseline tariffs, including steel and aluminum products, semiconductors, and energy and energy products, will continue to apply.
- China will reduce tariffs on U.S. imports to 10 percent, down from 125 percent.
- China will also take steps to remove certain non-tariff countermeasures taken against the United States in recent weeks, such as restricting its exports of rare earth metals and blacklisting certain U.S. companies.
The agreement will be in effect for 90 days while discussions aimed at achieving a permanent trade deal continue.
Pursuant to an Executive Order issued by President Trump shortly after the announcement was made, the new tariff rate on Chinese imports will be effective for goods entered for consumption, or withdrawn from warehouse for consumption, on or after May 14, 2025. In addition, the Executive Order lowers the U.S. tariff rate on de minimis imports from China (i.e., items valued at up to $800) to 54 percent, down from 120 percent. As a result, carriers of de minimis imports must either pay the 54 percent tariff or a $100 fee per package (the planned increase to $200 on June 1, 2025 will no longer occur).
B. Framework Released for U.S.-UK Economic Prosperity Deal
On May 8, 2025, President Trump and UK Prime Minister Keir Starmer jointly announced a framework outlining the structure and priority areas for the U.S.-UK Economic Prosperity Deal ("EPD"), a new bilateral trade deal expected to be finalized later this year. The framework focuses on reducing tariffs and non-tariff barriers across various economic sectors, including the steel, aluminum, and automotive industries. Key elements of the framework include:
- The United States will continue to impose a baseline 10 percent tariff on most UK imports not otherwise exempted or specifically addressed in the EPD.
- A certain quota of UK steel and aluminum products will be eligible to enter the United States tariff-free, down from the 25 percent that would otherwise apply.
- Tariffs on the initial 100,000 UK vehicles entered into the United States will be subject to a 10 percent tariff, down from the 25 percent tariff that would otherwise apply.
- Both countries will establish preferential duty-free quotas for certain agricultural products, including beef imports, with all such products adhering to the importing country's food and health standards.
- U.S. ethanol exports to the United Kingdom will be tariff-free.
- The countries agreed to negotiate preferential treatment outcomes for pharmaceuticals and pharmaceutical ingredients, as well as to seek an expansion of digital trade and services, including financial services.
The EPD framework comes as the Trump Administration pursues bilateral deals with its trading partners across the world. The agreement with the United Kingdom marks the first such arrangement to be announced, with a number of additional agreements expected to be revealed in the coming weeks.
C. Latest Tariff-Related Developments
The bilateral deals with China and the United Kingdom come into focus nearly six weeks after President Trump unveiled a wide-ranging reciprocal tariff regime in a "Liberation Day" ceremony on April 2, 2025. Since that announcement, the Trump Administration has taken several actions to implement its trade policies, including:
- Reciprocal tariff pause. On April 9, 2025, President Trump issued Executive Order 14266 to pause implementation of most elements of the reciprocal tariff regime. Under the Executive Order, the country-specific reciprocal tariff rate for each country identified in the Executive Order was suspended until July 9, 2025 to allow for bilateral negotiations to occur. Notably, the 10 percent baseline reciprocal tariff remains in place for imports from virtually every country in the world during this period.
- Section 301 action in China shipbuilding investigation. On April 17, 2025, the Office of the U.S. Trade Representative ("USTR") announced its final action in a Section 301 investigation into China's policies to dominate the maritime, logistics, and shipbuilding sectors. In the action, USTR determined that appropriate remedial actions should be taken in response to China's policies. Specifically, the USTR determination proposes two phases of action: The first phase will begin 180 days after the final action was published, at which time the U.S. Government will impose fees on (i) vessels with Chinese owners or operators, (ii) operators of Chinese-built ships (that are not owned or operated by Chinese entities), and (iii) foreign-built car carrier vessels. During the second phase, which will begin in three years, the U.S. Government will require U.S. operators to use U.S. vessels for the maritime transport of an annually increasing percentage of LNG exports. In the final action, the USTR also proposes to impose tariffs on ship-to-shore cranes and other cargo handling equipment.
- Stacking Executive Order. On April 29, 2025, President Trump issued Executive Order 14289 to streamline the application of multiple tariffs on the same imported goods. The Executive Order aims to prevent the cumulative effect of overlapping tariffs—known as "stacking"—which can result in excessive duty rates beyond what the Administration has deemed necessary to achieve its policy objectives. In particular, the Executive Order states that: (i) items subject to the automobile and auto part tariffs are not subject to the Canada and Mexico tariffs or the tariffs on steel and aluminum articles; (ii) items subject to the Canada or Mexico tariffs are not subject to the tariffs on steel or aluminum articles; and (iii) items subject to the steel or aluminum tariffs may be subject to both the steel and aluminum tariffs if the item satisfies all necessary conditions. The Executive Order applies retroactively to relevant entries made on or after March 4, 2025.
- Ongoing Section 232 investigations. A number of Section 232 investigations have been initiated in recent weeks or remain ongoing, including with respect to imports of critical minerals, commercial aircraft and jet engines, trucks, semiconductors, pharmaceuticals, copper, and lumber. These investigations may result in the imposition of additional tariffs or other trade restrictions on these industries.
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