US to Reduce Certain Tariffs on Chinese Goods, Key Trade Levies Remain

The United States has announced a partial reduction of tariffs on Chinese imports linked to fentanyl, while other significant trade measures remain in effect.

In a move adjusting a specific aspect of the bilateral trade relationship, the United States will reduce tariffs imposed on Chinese products under so-called fentanyl containment measures by 10 percentage points overall, effective 10 November 2025.

Concurrently, the suspension of 'further reciprocal tariffs' on Chinese goods will be extended until 10 November 2026. The existing 10% reciprocal tariffs will remain in place during this suspension period.

Presidential Statement

During an interview aboard Air Force One on 31 October 2025, President Trump stated he would be 'very happy' to reduce tariffs on China by a further 10%. He expressed an intention to eliminate the remaining 10% 'fentanyl tariff'.

Key Distinctions on Section 301 Tariffs

Crucially, the broader US Section 301 tariffs on China remain unchanged and continue to be imposed. Officials have clarified a widespread misunderstanding among some enterprises.

The actual adjustment is limited: the United States has suspended for one year the Section 301 investigation tariffs specifically on Chinese maritime vessels. This investigation is entirely distinct from the wider Section 301 investigations on goods and commodities conducted since 2018.

Similarly, China's corresponding one-year suspension of countermeasures only pertains to US Section 301 maritime investigations. It does not suspend countervailing duties on goods. Instead, it suspends the Chinese Ministry of Transport's imposition of special port fees on US vessels-a measure targeting maritime shipping unrelated to goods tariffs.

Therefore, enterprises importing US goods that fall under the countervailing Section 301 tariff list must still apply for a market-based procurement exemption number to qualify for tariff exemption.

The various Section 232 tariffs imposed by the United States, which apply globally, remain unaffected and continue to be implemented.

Chinese Counter-Adjustments

In a corresponding adjustment, China will remove the 10% additional tariffs on certain US goods, as outlined in its Announcements No. 1 and No. 2 of 2025 by the Tariff Commission. This matches the US reduction of its fentanyl tariffs by 10%. Specific details are pending subsequent announcements from China's Ministry of Finance.

China's core countermeasures against US Section 301 tariffs remain unchanged and in force.

Conditional and Cautious Measures

The negotiation outcomes reveal a conditional approach. China specifically emphasised that its suspension of shipping fee measures against the US would only occur 'after the US suspends implementation of Section 301 investigation measures concerning the maritime logistics and shipbuilding industries'.

A cautious stance is also evident. While China mentioned suspending for one year the export control measures on rare earths and hard materials announced on 9 October 2025, it specified that detailed implementation plans require further study.

Notably, other Chinese export control measures not mentioned in the talks' outcomes remain in effect. These include adjustments to the Catalogue of Technologies Prohibited or Restricted for Export (Announcement No. 28 of 2025) and the decision to implement export controls on certain medium and heavy rare earth-related items (Announcement No. 18 of 2025).

Industry Reaction

The industry response reflects a mix of short-term action and long-term caution. An industry consultant who previously managed logistics for two national retailers observed: 'If needed now, orders will be placed. But in the longer term, retailers remain cautious, with lingering hesitation.'

Some companies are making immediate adjustments. Outdoor gear importer Revelyst stated that following the agreement's announcement, it had switched some air freight shipments scheduled for 1st November to sea freight to reduce costs. 'This saves us a considerable amount,' said John Pace, the company's senior logistics manager.

While the agreement is expected to prompt some American retailers to accelerate imports in the short term, industry insiders believe the one-year validity of this temporary arrangement is unlikely to provide importers with long-term confidence, meaning supply chain strategies will remain cautious.