U.S. and China Clinch One-Year Pause on Controls as U.S. Drops 10% Fentanyl Tariff

Overview

• The United States will cancel the 10% so-called fentanyl tariff on Chinese goods, which also covered shipments from Hong Kong and Macao.
• A previously imposed 24% mutual tariff on Chinese goods will remain suspended for another year under the new understanding.
• Washington will pause its recently announced “50%” export-control rule for one year, and Beijing will suspend its corresponding measures for the same period.
• China stated it will adjust retaliatory tariffs and will study and refine export-control plans during the one-year suspension, with specifics still under review.
• The agreement followed two days of talks in Kuala Lumpur led by China’s Vice Premier He Lifeng and U.S. Treasury chief Scott Bessent.