The tariffs can stay, for now, a federal circuit court has ruled – and the U.S. and China have reached a deal that would settle the tariff rate going forward.
Following two days of trade talks in London by U.S. and Chinese officials, President Donald Trump announced the agreement in a social media post on June 11. The deal, which must be formally approved by Trump and Xi Jinping, will settle reciprocal tariff rates. Trump says Chinese goods imported into the U.S. will now be subject to a 55% cumulative tariff, while other sources estimate the overall rate will be closer to 33%.
This should bring some stability to global markets, including the promo industry, which has endured a roller coaster of changing rates and rules over the past five months:
- February 1: Trump imposes a 10% tariff on all Chinese imports via executive order, citing concerns over fentanyl trafficking.
- March 4: The U.S. increases tariffs on Chinese goods to 20%. China retaliates with 15% tariffs on U.S. agricultural products and energy exports.
- April 2: Universal 10% tariff announced on all imports, with additional “reciprocal” tariffs targeting specific countries.
- April 9: U.S. tariffs on Chinese goods escalate to 145%. China responds with tariffs up to 125% and suspends exports of critical rare earth minerals.
- May 12: Both nations agree to a 90-day tariff truce, with U.S. tariffs on Chinese goods reduced to 30% for the time being.
- June 11: A new trade agreement is announced. The U.S. charges a 55% tariff on Chinese goods (comprising multiple existing duties) and agrees to allow Chinese students in U.S. universities, while China commits to resuming rare earth exports and a 10% rate on U.S. goods.
Amid the rapid-fire changes, many promo firms have had no choice but to take a wait-and-see approach, and the June 11 announcement provides welcome clarity.
“In our industry, confidence drives action,” says Jake Himelstein, president of BAMKO, the No. 4 distributor in the 2025 PPAI 100. ”With tariff levels now set, we can shift from speculation to strategy, helping customers navigate the new cost realities with greater certainty.”
Jake Himelstein
President, BAMKO
Courts OK Continued Tariffs During Appeals
Multiple lawsuits have been filed challenging the legality of the administration’s ability to implement tariffs. Most have been levied as part of an emergency declaration under the International Emergency Economic Powers Act, citing persistent U.S. trade deficits and associated economic impacts as justification.
A May 28 ruling by the U.S. Court of International Trade blocked many of the tariffs, ruling that the president overstepped his authority and paused reciprocal tariffs on dozens of countries. However, less than 24 hours later, a federal appeals court granted the Trump administration’s request to temporarily pause the pause, reinstating the import duties “until further notice.”
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On June 10, a federal circuit court granted the administration’s request to keep the president’s tariffs in place during the appeals process. The circuit court also fast-tracked the appeal, with oral arguments set for July 31, writing that “these cases present issues of exceptional importance warranting expedited en banc consideration.”
Trump had previously pledged to take his case to the Supreme Court for “emergency relief,” and the White House called this most recent ruling “a welcome development.”
Although White House officials continue to promise more trade deals, agreements with only two nations – the United Kingdom and China – have been announced so far. India may be next, as officials held trade talks this week and the BBC reports that Indian officials hope to reach a trade agreement with the U.S. before the 90-day pause on reciprocal tariffs ends on July 9.
For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch at RachelZ@ppai.org.
