The 2025 US-China trade agreement has significantly changed the landscape of international trade. By reducing US tariffs on Chinese imports, it has prompted businesses worldwide to revisit their sourcing strategies and logistics models. For companies involved in global commerce, staying informed and agile is more important than ever.

This shift comes at a time when broader economic changes, including the Donald Trump stimulus 2025, are also influencing market behavior. Together, these developments are reshaping procurement, pricing, and supply chain decisions across industries.

Understanding the 2025 US-China Trade Agreement

In May 2025, the United States and China reached a temporary agreement to reduce tariffs as part of the broader U.S.-China Trade Talks 2025. The US cut tariffs on Chinese goods from 145% to 30%, while China reduced tariffs on US products from 125% to 10%. The agreement provides a 90-day window to work toward a more comprehensive trade framework.

This temporary truce marks a de-escalation in ongoing trade tensions and creates new opportunities for companies engaged in international sourcing.

What Goods from China Still Face Tariffs?

Although tariffs have decreased, not all goods are exempt. Here are some product categories still affected:

• Toys: Up to 145% tariffs
• Consumer Electronics: 20% tariff on laptops, phones, and TVs
• Electric Vehicles (EVs): Increased to 100%
• Semiconductors: Now at 50%
• Solar Cells: Raised to 50%
• Medical Supplies: Up to 50% on syringes, 25% on certain PPE
• Steel and Aluminum: 25% tariff in effect
• Lithium-Ion Batteries and Components: Increased to 25%
• Critical Minerals: 25% tariffs starting in 2026
• Low-Value Shipments: De minimis exemption eliminated for goods under $800

Businesses importing these goods need to remain vigilant and adjust their cost structures accordingly.

Impact on Global Supply Chains

The effects of the agreement are being felt throughout the supply chain. From manufacturing to shipping and retail, the reduced tariffs are bringing both opportunities and challenges.

Resumed Trade Flows

With costs lower, many companies are reactivating relationships with Chinese suppliers. The return to Chinese sourcing is helping reduce overall procurement costs.

Retail Adjustments

Retailers are seeing margin improvements as lower import costs reduce pressure on pricing. However, tariffs are still high enough to influence how companies manage inventory and set prices.

Surge in Logistics Activity

Freight carriers and ports are reporting increased activity as importers rush to take advantage of the new trade terms. This rise in volume is reenergizing segments of the shipping industry that had slowed in response to previous trade restrictions.

How Businesses Are Responding Strategically

To thrive in this shifting trade environment, businesses are taking strategic steps to strengthen their operations and mitigate future risks.

Supplier Diversification

Many companies are expanding their supplier base beyond China to include Southeast Asia, Latin America, and domestic sources. This diversified approach offers protection against future policy changes.

Procurement Reevaluation

With certain Chinese goods now more affordable, businesses are reassessing supplier contracts and sourcing strategies. Some are returning to Chinese suppliers while negotiating better terms with others.

Technology Investments

To reduce dependence on imports and increase production efficiency, companies are investing in automation and smart manufacturing technologies.

Scenario Planning

Firms are implementing more flexible supply chain models. Trade forecasting and inventory simulation tools are helping businesses stay agile and resilient.

Broader Economic Implications

While the trade agreement brings short-term relief, it does not eliminate all uncertainties.

• Economic recovery remains uneven, with slow growth in manufacturing and consumer spending.
• Inflation continues to be a concern, and analysts question whether recent stimulus measures will provide long-term economic support.
• Future trade deals depend on continued cooperation, which is not guaranteed.

Navigating the New Trade Environment

In a complex and rapidly evolving global market, companies must focus on efficiency and compliance. Key actions include:

Staying Informed on Tariff Classifications

Keeping up with which goods from China still face tariffs is essential for accurate pricing and supply planning.

Monitoring Trade Volumes

Understanding how much trade is occurring between the US and China can help businesses forecast demand and adjust operations accordingly.

Utilizing IOR and EOR Services

Partnering with providers that offer importer of record services, exporter of record services, or complete IOR and EOR services helps companies manage customs documentation, reduce regulatory risk, and maintain timely deliveries.

Firms that use IOR global services benefit from smooth border clearance and greater consistency in cross-border logistics. These solutions are particularly important for businesses managing high-volume shipments or expanding into new markets.

Enhancing Compliance Through Custom Clearance Support

Efficient customs handling is crucial. Working with experts in importer exporter of record solutions ensures that shipments comply with trade regulations and avoid costly delays or fines.

Bottom Line

The 2025 US-China trade agreement has brought meaningful change to international trade. With reduced tariffs on many goods, companies are adapting fast to capture new opportunities. Still, global commerce remains uncertain, and businesses need to stay agile, informed, and compliant.

Leveraging experienced partners like TLS Technologies for IOR importer of record, exporter of record services, and IOR and EOR services provides a valuable advantage. Their support helps businesses stay compliant and efficient in an increasingly complex trade environment.