Overview of the Latest U.S.-China Tariff Agreement
On May 12, 2025, the United States and China reached a significant agreement to suspend the majority of their respective tariffs for a 90-day period. This development follows intensive negotiations held in Geneva and marks a substantial de-escalation in the ongoing trade tensions between the two nations. It’s also good news for the carbon fiber trade.
Under the terms of the agreement:
- United States: Tariffs on Chinese imports will be reduced from a peak of 145% to 30%.
- China: Tariffs on American goods will be lowered from 125% to 10%.
It’s important to note that certain U.S. tariffs, particularly those related to fentanyl and specific measures, will remain in place.
Estimated carbon Fiber Tariff Costs for Clients
To provide a practical perspective, consider the following example:
- Product: Custom carbon fiber automotive component
- Manufacturing Cost: $1,000
- Previous Tariff (145%): $1,450
- Total Cost with Previous Tariff: $2,450AP News+5JD Supra+5McGuireWoods+5
Under the new 30% tariff:
- Tariff Amount: $300
- Total Cost with Current Tariff: $1,300
This example illustrates a substantial cost reduction, enhancing the affordability of custom carbon fiber parts for our clients.
Original Joint Statement
On May 12, 2025, delegations from China and the United States held a new round of high-level economic and trade talks in Geneva, Switzerland. The discussions were conducted in a frank, in-depth, and constructive manner, guided by the principles of equality and mutual benefit. The two sides focused on issues such as tariff adjustments, market access, and fair trade.
Both parties agreed as follows:
- Beginning immediately, both sides will suspend the imposition of new tariffs against each other for a period of 90 days;
- The United States will reduce additional tariffs on certain Chinese goods from a peak of 145% to 30%, while China will reduce additional tariffs on certain U.S. goods from 125% to 10%;
- During the 90-day suspension, both sides will continue negotiations with the aim of reaching a long-term consensus on an economic and trade cooperation framework;
- Both countries are committed to strengthening intellectual property protection, improving the business environment, and promoting technological cooperation;
- Both sides will maintain close communication to avoid misunderstandings and prevent escalation of tensions.
The achievements of this round of talks did not come easily and reflect the shared desire of both countries to ease trade tensions and stabilize global supply chains. Going forward, both China and the United States will uphold the spirit of mutual respect and win-win cooperation to build a stable, healthy, and sustainable bilateral economic and trade relationship.
— End of Joint Statement
Key impacts include
carbon fiber products — including raw materials, prepregs, and custom carbon fiber parts — will see a significant decrease in import/export duties. The reduced tariffs are likely to enhance the global competitiveness of carbon fiber products made in China and the U.S. Companies that rely on cross-border sourcing of carbon fiber materials or finished components will benefit from lower landed costs. The temporary trade truce will encourage more stable and predictable supply chains for carbon fiber production and exports, which is especially important for industries such as aerospace, automotive, and high-end sports equipment.
Overall, the Geneva joint statement is a positive development for the global carbon fiber industry, with immediate financial benefits and potential long-term trade cooperation between China and the United States.
Alizn’s Commitment to Clients
At Alizn, we are dedicated to providing high-quality custom carbon fiber solutions while navigating the complexities of international trade. We continuously monitor trade developments to offer our clients the most cost-effective and efficient services.
We encourage our clients to reach out with any questions or concerns regarding how these tariff changes may affect their specific projects. Our team is ready to provide personalized assistance and guidance.
Contact Information:
- Email: service@alizn.com
- Phone: +(86) 18930689530
- Website: www.alizn.com
Alizn – Your Trusted Partner in Custom Carbon Fiber Manufacturing
