In encouraging news for the promotional products industry, the United States and China have agreed to significantly reduce tariffs they’ve imposed on each other for 90 days, according to a joint statement released on Monday.

Starting Wednesday, May 14, the U.S. will cut the tariff rate on imports from China from 145% to 30%.

  • The new rate includes a 10% reciprocal tariff and an existing 20% fentanyl-related tariff.
  • However, the 30% is in addition to tariffs imposed on China during President Donald Trump’s first term.
  • Tariffs recently imposed on Chinese imports previously exempt under de minimis at the rate of 120% of their value weren’t mentioned in the agreement.


Meanwhile, China will reduce the tariff rate on imports from the U.S. from 125% to 10%.

Following negotiations in Switzerland over the weekend, both countries will continue discussions about economic and trade relations alternately in China and the U.S. or in a third country upon agreement, according to the statement.

Impact On Promo

A 90-day pause will bring some stability to the promo world (as well as most other industries) after experiencing drawbacks with the rapidly changing tariffs applied in recent months, not only affecting costs but also providing little sense of when economic conditions will stabilize.

Last Thursday, PPAI Media hosted a webinar featuring PPAI President & CEO Drew Holmgreen, who was joined by Association lobbyist Chris Lamond, of Thorn Run Partners, and four key industry executives who discussed practical strategies to navigate today’s complex global trade landscape.

WATCH: PPAI Hosts Industry Leaders For Tariffs & Trade Webinar

“I think we’re getting really sympathetic ears on Capitol Hill as to the impact that this uncertainty is causing our members and their constituents,” Lamond said, “… although this administration has been extremely strident in their viewpoint that they want to reset the global trade market.”

He added that PPAI is working diligently to monitor the chaos and communicate with elected officials to make sure the economic impact on PPAI members is understood.

ICYMI: LEAD Brought Promo’s Voice To Congress: Now It’s Your Turn

Holmgreen agreed and urged members to share their own tariff impact stories with their members of Congress.

“Use your voice. We need these stories,” he said. “When we were in D.C. for LEAD, it was those stories of impact that were really resonating with our Congress members.”

For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch at RachelZ@ppai.org.