The global manufacturing sector received a welcome development this week as the United States and China agreed to a temporary reduction in tariffs, easing months of escalating trade tensions. This 90-day truce is already making waves across supply chains and for US manufacturers sourcing industrial automation parts. The impact is both immediate and significant. At EU Automation, we understand the recent tariff policy can feel unpredictable. That’s why we’re breaking down what this short-term agreement means for you.
What has changed?
In an agreement reached in Geneva on May 12, 2025, the US and China committed to lowering many of the tariffs imposed on each other’s goods. Under the terms:
- US tariffs on Chinese imports have been reduced from 145% to 30%.
- China has lowered tariffs on US goods from 125% to 10%.
- These changes are effective for 90 days, during which further negotiations are expected.
In a major development for cross-border e-commerce, the United States has announced a reduction in tariffs on small parcels imported from mainland China and Hong Kong. Specifically, tariffs on packages valued up to $800 have been decreased from 120% to 54%. Additionally, a planned $200 charge per parcel, which was set to take effect on June 1, has been cancelled, although a flat fee of $100 per parcel remains in place.
With the new tariff rates in place, U.S. consumers may experience some relief in the cost of small parcel imports from China. However, it's important to note that these measures are temporary. They are subject to change pending on the outcome of ongoing trade negotiations between the two countries. Whilst some trade restrictions such as those involving sensitive materials or enforcement provisions remain in place, this appears to be a crucial window of opportunity for businesses sourcing internationally.
What does this mean for you?
As a globally connected supplier, EU Automation regularly sources components from international stock to fulfill urgent or hard-to-find requests. Under normal circumstances, tariffs may be applied when sourcing outside the US, but during this truce, those fees are greatly reduced.
Here’s what you can expect from EU Automation:
- Clear quoting – If tariffs apply, they’ll be clearly itemised at the bottom of your quote with no surprises.
- Optimised sourcing – We’ll continue to use our global supply network to find the most cost-effective route for your parts.
- Flexible shipping – Prefer to manage importation directly? We’re happy to ship using your international shipping account.
Our priority remains giving you full visibility and control while ensuring the fastest, most reliable route to the parts you need.
What happens after 90 days?
The truth is… nobody knows for sure. This truce is a pause, not a resolution. Negotiations may lead to long-term tariff reform, but they could just as easily collapse, leading to the reintroduction of higher duties or new trade barriers. For that reason, this is a critical window for manufacturers to make strategic sourcing decisions. By ordering now, you can benefit from lower tariff rates, reduced supply chain friction and greater cost certainty.
Our commitment to you
EU Automation remains committed to helping our customers navigate complex global sourcing challenges. Whether the trade environment stabilises or shifts again, you can count on us for:
- Transparent pricing
- Responsive support
- Global sourcing agility
- Fast, reliable delivery
If you have questions about how the tariff changes may affect your next order or need guidance on compliance and documentation our team is always ready to help.
For any further assistance, please feel free to contact us or call the relevant number.
