⚡ Key Numbers
US tariffs on Chinese goods dropped from 145% to 30% on May 14, 2026. China's tariffs on US goods dropped from 125% to 10%. The truce lasts 90 days — expiring around August 12, 2026.
After weeks of escalation that pushed US tariffs on Chinese goods to 145%, the US and China agreed to a temporary truce following two days of talks in Geneva. Starting May 14, 2026, the punishing reciprocal tariffs were suspended — not eliminated — for 90 days. For importers, this opened a narrow window to move inventory at dramatically lower costs. Here's everything that changed, what stayed the same, and how to plan your shipments before the window closes.
The Geneva Joint Statement suspended the bulk of the IEEPA-based "reciprocal" tariffs that had been imposed during the April 2026 trade escalation. The US reduced its rate from 145% down to 30%, and China cut its retaliatory tariff from 125% to 10%.
The 30% remaining US tariff on Chinese goods is not arbitrary — it's a stack of two separate levies:
The 115% reciprocal tariff that was added in April 2026 is what got suspended. The 10% baseline and the 20% fentanyl-linked tariff remain in place for the duration of the truce, and likely beyond it.
| Tariff Component | Before Truce | During Truce | Status |
|---|---|---|---|
| IEEPA baseline | 10% | 10% | Permanent (not suspended) |
| Fentanyl emergency tariff | 20% | 20% | Permanent (not suspended) |
| April 2026 reciprocal tariff | 115% | 0% | Suspended 90 days |
| Total IEEPA rate | 145% | 30% | — |
On top of the IEEPA stack, all pre-existing Section 301 tariffs (typically 7.5% to 25% depending on product category) remain fully in effect. That means most Chinese goods actually face 30% + their Section 301 rate — so the realistic effective rate for many products is 37.5% to 55%, not 30%.
Several categories are completely unaffected by the 90-day pause:
⚠️ Still at Full Rate — Not Covered by Truce
Steel and aluminum (Section 232): 25% tariff remains. These were never part of the reciprocal IEEPA tariffs.
Solar cells and panels: Subject to separate Section 201 safeguard tariffs (14.25% in 2026) plus Section 301. Truce doesn't touch these.
Semiconductors and EV batteries: Section 301 List 3 rates (25%) are unchanged. CHIPS Act-related restrictions also unaffected.
Goods transshipped through Hong Kong: Hong Kong was specifically excluded from the truce. Goods manufactured in mainland China but shipped via Hong Kong still face 145%.
The de minimis exemption for Chinese goods — eliminated in May 2026 — also stays gone. Packages under $800 from China and Hong Kong no longer enter duty-free. That change was made under a separate executive order and was not part of the truce negotiations. See our guide on de minimis rules for Chinese imports in 2026 for the full breakdown.
To make this concrete, here's what actual duty bills look like on a $10,000 customs value shipment across a few common product categories:
| Product Category | Section 301 Rate | IEEPA (truce) | Total Rate | Duty on $10,000 |
|---|---|---|---|---|
| Consumer electronics (List 3) | 25% | 30% | 55% | $5,500 |
| Furniture and bedding (List 3) | 25% | 30% | 55% | $5,500 |
| Clothing and apparel (List 4A) | 7.5% | 30% | 37.5% | $3,750 |
| Plastic toys (List 4A) | 7.5% | 30% | 37.5% | $3,750 |
| Industrial machinery (List 1) | 25% | 30% | 55% | $5,500 |
Compare that to the pre-truce situation where the same electronics shipment would have carried a 170% effective duty ($17,000 in duties on a $10,000 shipment), and you can see why there was an immediate rush to move inventory.
Use the USTariffCalc calculator to get the precise rate for your HTS code — Section 301 rates vary significantly within each list, and some goods may also attract the MFN (Most Favored Nation) base rate on top of everything else.
The tariff rate is only one piece of your total landed cost. Here's the full formula importers need to use right now:
During the truce, the big variable is the customs value × tariff rate. The customs value is typically the transaction value (what you paid for the goods), though CBP has specific rules for related-party transactions. If you're calculating first-sale valuation or have an assist component (tooling, IP licensed to the manufacturer), your customs broker will need to factor those in.
Don't overlook the costs beyond tariffs — port congestion surcharges, merchandise processing fees (0.3464% of declared value, min $31.67), and harbor maintenance fees add up fast on large shipments.
Use the USITC HTS search or the tariff calculator here. The 10-digit HTS code determines your Section 301 rate. The first 8 digits align with the international HS system; the last 2 are US-specific.
Add MFN base rate + Section 301 rate + 30% IEEPA truce rate. Some goods also have Section 232 (steel/aluminum content) or antidumping duties — check USITC's ADD/CVD portal separately.
If your goods underwent substantial transformation in Vietnam, Mexico, or another country before export, they may qualify under those countries' lower rates. But CBP has tightened scrutiny on Chinese components assembled elsewhere. See our Vietnam vs China tariff comparison.
The truce expires 90 days after May 14 — putting the deadline at approximately August 12, 2026. Three scenarios are in play:
Scenario A: Extended truce. Both sides agree to another 90 days (or longer) while formal negotiations continue. Rates stay at 30%/10%. This is considered the base case by most trade analysts if talks progress.
Scenario B: Partial deal. A phase-one style agreement locks in some tariff reductions on specific categories (agricultural goods, energy, large commercial purchases) while manufacturing tariffs stay elevated. Importers get category-by-category clarity.
Scenario C: Reversion to 145%. Talks collapse and the full reciprocal tariffs snap back. Given the economic damage 145% caused in April 2026 — port volumes dropped 20%+ within weeks — both governments have strong incentives to avoid this outcome. But it remains the worst-case scenario importers must plan for.
📅 Planning Tip
If you're sourcing from China, your goods need to be in customs clearance before August 12 to benefit from the 30% rate. Factor in production lead time, ocean freight (4–6 weeks from major Chinese ports to US West Coast), and customs processing. If you're ordering today, June 12, you're already cutting it close for standard ocean freight.
The truce has created a short-term buying opportunity for FBA sellers with existing supplier relationships in China. Products that were completely unviable at 145% — where landed cost exceeded selling price — are back in positive margin territory at 30%, at least on paper.
The key risk for FBA sellers is inventory timing. If you order heavily now betting on another extension, and the truce expires before your goods clear customs, you could face duties at 145% on shipments you priced for 30%. Build a contingency into your unit economics.
For a detailed breakdown of how tariffs layer onto FBA fees and margins, see our guide on tariffs for Amazon FBA sellers and the FBA profit margin guide.
Calculate Your Exact Duty Cost During the Truce
Enter your HTS code and customs value — get the full stacked rate including Section 301, IEEPA, and base MFN in seconds.
Calculate Now →The short answer: yes. The truce is temporary and the structural pressure to reduce US dependence on Chinese manufacturing hasn't changed. The Section 301 tariffs that started under the Biden administration are still in place. The 10% IEEPA baseline and 20% fentanyl tariff don't expire. And 30% is still historically high — pre-2018, most Chinese goods entered at 0–3.5% MFN.
Countries like Vietnam, India, Mexico, and Bangladesh are still competitive alternatives for many product categories, especially labor-intensive goods. The China Plus One strategy remains sound even with the truce. What the truce does is give you time — use it to plan rather than just react.
For a side-by-side cost comparison between Chinese suppliers and alternatives, the landed cost comparison tool lets you model all three scenarios simultaneously.
Yes. Goods are classified based on their date of entry into US customs, not the date they shipped. If your shipment clears US customs on or after May 14, 2026, it benefits from the 30% IEEPA rate. Goods that cleared before May 14 paid the 145% rate and are generally not eligible for retroactive refunds under the truce terms.
No. Hong Kong was explicitly excluded from the truce. Goods with a country of origin of mainland China but transshipped through Hong Kong still face 145% total IEEPA tariffs. CBP looks at country of origin (where substantial transformation occurred), not the port of export. If your factory is in Shenzhen and you route through Hong Kong, you're still at 145%.
The IEEPA-based tariffs from the April escalation are separate from Section 301. There is no announced refund program for IEEPA duties paid during the brief 145% period. Section 301 refunds are a different matter — see our guide on Section 301 refund status in 2026 for that process.
Goods in a bonded warehouse pay duties at the rate in effect at the time of release into US commerce, not when they entered the warehouse. If you store goods now and release them after August 12 — and the truce has expired — you'll owe the higher rate. Plan your release timing accordingly.
No. Section 232 tariffs (25% on steel, 10% on aluminum) are separate legal authority from the IEEPA tariffs. They were not part of the Geneva negotiation and remain fully in force. Products with significant steel or aluminum content from China face both their applicable IEEPA rate and the Section 232 rate.