A temporary 90-day trade agreement between the United States and China, in effect from May 14 through August 12, 2025, is set to impact the import dynamics of bulk ingredients, wholesale commodities, and retail-ready products. This interim measure modifies tariff structures on a selection of imported goods and underscores the fluid nature of current trade negotiations between the two global powers.
For businesses involved in sourcing, importing, and distributing food products, particularly those supplying the bulk, private label, or wholesale markets, this agreement has direct implications on landed costs, pricing models, and supply chain strategies.
Breakdown of the Tariffs
Currently, impacted goods may be subject to a cumulative tariff rate of up to 55%, assessed line by line. These tariffs are the result of three distinct components:
- 25% Section 301 Tariff
Originally introduced in 2020 and extended in 2024 under the Biden administration, this tariff remains a cornerstone of the U.S.’s trade enforcement strategy.
View official USTR documentation → - 20% IEEPA Tariff
Instituted under the International Emergency Economic Powers Act, this tariff was designed to address national security and strategic supply chain vulnerabilities, including in critical sectors like food ingredients and agricultural imports.
Read the official White House announcement → - 10% Reciprocal Tariff (as of May 14, 2025)
Recently reduced from a prior rate of 125%, this adjustment reflects a concession during current trade discussions. The reciprocal tariff is expected to rise again, to 34%, after the 90 days unless further progress is made.
Read the updated White House statement →
What This Means for Your Supply Chain
If your business is importing ingredients or private label goods from China during this period, it is essential to:
- Recalculate landed costs and profit margins under the new tariff scheme
- Adjust pricing strategies for B2B and retail customers
- Consider timing shipments or diversifying sourcing origins as a hedge against post-August tariff increases
- Monitor ongoing developments in U.S.–China trade policy and prepare for potential future changes that could impact supply chain planning
Companies importing wholesale food items, including grains, spices, shelf-stable products, and specialty ingredients, must stay informed and agile. For those producing private label goods or supplying retailers, manufacturers, and co-packers, even short-term tariff shifts can create ripple effects across the logistics, compliance, and procurement processes.
In Summary
This 90-day window presents both risk and opportunity. While the tariff reduction offers temporary relief, uncertainty remains. Staying informed and working closely with customs brokers, logistics partners, and international trade advisors will help food supply chain operators manage costs, maintain fulfillment timelines, and remain compliant.
If you’re facing challenges navigating these changes or need guidance on how this may impact your bulk importing, private label programs, or wholesale ingredient sourcing, get in touch with us. Our team is here to support you through trade complexities and help you keep your supply chain moving efficiently.
