From CNBC: 2025-05-13 00:51:00

In a bid to address supply chain disruptions for Christmas, the U.S. and China agree to slash tariffs for 90 days. U.S. retail sales saw a 4% increase to a record $994.1 billion last year, with nearly a fifth coming from the holiday season. Chinese factories can now resume production for U.S. clients.

While the 90-day tariff cuts avoid a Christmas disaster for U.S. retailers, prices are still expected to rise due to added costs for tariffs and logistics. U.S. duties on Chinese goods remain, with a total weighted average tariff rate of around 43.5% on Chinese products, including pre-existing duties.

China’s exports to the U.S. dropped by more than 20% in April, but exports to the world rose by 8.1%. Around 16 million Chinese jobs are tied to producing products for the U.S., according to estimates by Goldman Sachs. Walmart is yet to confirm the impact of reduced tariffs on its orders from China.

Read more: Tariff cuts can get China-made goods to the U.S. in time for Christmas