ASEAN and US Tariff Dilemma: Hybrid Approach to Global Trade Tensions
	Negotiations to upgrade the ASEAN Trade in Goods Agreement

According to the statement, the US will implement two key measures. First, it will revise the imposition of additional tariffs on goods originating from China, including those from the Hong Kong and Macau Special Administrative Regions.

Specifically, the US will temporarily suspend 24 percentage points of the additional ad valorem tariffs for 90 days. However, the remaining 10% tariff on these goods will remain in place under the terms of Executive Order No. 14257, issued on April 2, 2025.

US Treasury Secretary Scott Bessent (left) and US Trade Representative Jamieson Greer speak to the media following trade negotiations with China in Geneva, Switzerland, May 11. (Photo: Reuters)

In addition, the US will eliminate the revised additional tariffs imposed on these goods under Executive Orders No. 14259 (issued on April 8, 2025) and No. 14266 (issued on April 9, 2025).

As a result, the Trump administration has repealed all additional tariffs imposed on Chinese goods after April 2.

For the 34% retaliatory tariff announced on April 2, the US will apply only 10% for the next 90 days and suspend the remaining 24%. After this period, if no new agreement is reached, the 34% tariff will be reinstated.

It is important to note that it remains unclear whether the two parties have reached any agreement regarding the 20% tariff previously imposed by the US on Chinese goods before April 2. Without adjustments, the total effective tariff temporarily applied by the US on Chinese goods over the next 90 days will be 30%.

Chinese Vice Premier He Lifeng. (Photo: AP)

Meanwhile, China has also made notable commitments. According to the joint statement, China will correspondingly revise the application of additional ad valorem tariffs on goods originating from the US, as specified in Notice No. 4 of 2025 issued by the Tariff Commission of the State Council (the Chinese government), by suspending 24 percentage points of those tariffs for an initial period of 90 days.

China will also retain the 10% additional tariff on US goods. Furthermore, the additional tariffs revised under Notices No. 5 and No. 6 of the Tariff Commission of the State Council will be abolished.

Additionally, China has committed to taking the necessary administrative steps to suspend or repeal non-tariff retaliatory measures it has imposed on the US since April 2, 2025.

Thus, the most significant outcome of the negotiations is that both the US and China will reduce their retaliatory tariffs on each other’s goods to 10% over the next 90 days.

The joint statement also notes that, following the implementation of these measures, both sides will establish a mechanism to continue discussions on economic and trade relations.

Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessent, and US Trade Representative Jamieson Greer will serve as representatives in this new mechanism.

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