In early 2025, U.S.-China trade tensions reached a critical peak when the U.S. imposed a 125% "reciprocal tariff" on Chinese goods under the controversial Section 301 and 232 investigations. This move targeted sectors like semiconductors, electric vehicles (EVs), and solar panels, triggering immediate disruptions for manufacturers relying on cross-border supply chains. For instance, Chinese EV exporters faced a 100% tariff hike on vehicles shipped to the U.S., while U.S. agricultural exporters saw retaliatory 15% tariffs on soybeans and pork.
However, a pivotal shift occurred on August 12, 2025, following the Stockholm. Both nations agreed to suspend 24% of their reciprocal tariffs for 90 days, retaining only a 10% baseline tariff. This compromise aimed to stabilize trade flows while negotiations continued, offering a temporary reprieve for industries caught in the crossfire.