U.S. Tariffs on Hold: What’s Next for Chinese Exporters?

In May 2025, the United States and China agreed to a 90-day suspension of additional tariffs. While the decision has temporarily eased trade friction between the two economies, it has also introduced new uncertainty — particularly for Chinese exporters heavily reliant on the U.S. market.

For manufacturing and trading centers like Yiwu, this development raises a timely question:

Is this a short-term opportunity — or a signal to adjust for the long term?

The U.S. rolled back a number of tariff increases, reducing duties on select Chinese goods from as high as 145% to around 30%. China, in turn, lowered retaliatory tariffs on American imports from 125% to 10%. The agreement is valid for 90 days, during which both governments are expected to restart trade negotiations.

This truce comes at a politically sensitive moment for the U.S. administration — with inflation, retail pricing, and election strategy all influencing policy direction. But for exporters, the timeline is tight, and the future is unclear.

Exporters in Yiwu and other hubs have responded quickly. Some are seeing a modest uptick in inquiries, particularly for seasonal goods and low-value consumer items that had been priced out of the market under high tariff regimes.

However, buyers in the U.S. remain cautious. Many are taking a “wait and see” approach — delaying large orders until there is more clarity. This hesitation suggests that while the pause provides breathing room, it does not yet restore confidence.

This 90-day period may not last — but it offers a valuable window to rethink long-term positioning.

01. Diversify Export Markets

Companies are expanding sales to ASEAN, the Middle East, Eastern Europe, and Latin America. These regions offer more stable policy environments and growing consumer bases.

02. Strengthen Domestic Sales Channels

As global demand fluctuates, some exporters are turning inward — rebranding and repositioning for the Chinese domestic market, where consumer quality expectations are rising.

03. Build Supply Chain Flexibility

Businesses are investing in bonded warehouses, nearshoring options, and intermodal logistics setups to remain agile if trade terms shift again.

04. Monitor Trade Policy and Compliance

Understanding evolving HS codes, customs documentation, and local policy changes is critical. Delays and added costs are often a result of avoidable compliance gaps.

Trade negotiations may succeed — or stall. Tariffs could return, shift again, or deepen. For Chinese exporters, the key question isn’t just what this pause means now — but how to prepare for what comes next.

Those who treat this 90-day window as a strategic planning period — by diversifying markets, building supply chain agility, and strengthening compliance — will be far better positioned to weather future trade policy shifts.

In today’s global trade environment, resilience, adaptability, and proactive planning are not optional — they’re essential.

Sources: 

• The Guardian | Trump claims ‘total reset’ of US-China ties as 90-day pause to trade war agreed: https://www.theguardian.com/us-news/2025/may/12/china-us-agree-pause-trade-war-trump
• People’s Daily Online | Yiwu responds to U.S. tariff hikes with resilience, confidence - People's Daily Online https://en.people.cn/n3/2025/0508/c90000-20312257.html?utm_source=chatgpt.com

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