Editor’s Note: This report has been revised to indicate that Chinese imports subject to a 25% stainless steel and aluminum tariff are exempt from the temporarily reduced 10% reciprocal tariff.
Housewares suppliers said uncertainty remains a challenge despite the immediate tariff relief from the agreement between the United States and China to reduce tariffs significantly for 90 days while the countries try to work out a long-term trade deal.
The White House announced Monday that the United States and China agreed to reduce tariffs against one another by 115% during a 90-day negotiating period beginning May 14. The resulting 30% tariff on goods from China does not supersede certain additional U.S. tariffs on Chinese home and housewares imports, including those in place before the tariff escalation initiated this year by the second Trump administration.
The International Housewares Association goverment affairs office outlined how the temporary 30% tariff on Chinese imports could be stacked with other tariffs and duties:
- The reduced, 90-day tariff rate of 30% on Chinese imports encompasses the so-called 20% “fentanyl tariff” imposed in two phases earlier this year by the Trump administration and a 10% reciprocal tariff imposed by the Trump administration on goods from many countries across the world. The 10% reciprocal tariff on Chinese imports during the 90-day negotiating window marks a reduction from the original 34% reciprocal tariff rate on goods from China announced on April 2, 2025. President Donald Trump, in a series of retaliatory moves, subsequently raised the cumulative China tariff imposed this year to 145% before the agreement this week for a 90-day reduction to 30%.
- The temporarily revised 30% tariff on Chinese imports would be added to the existing 25% tariff imposed on select product categories under Section 301 of the Trade Act of 1974 by the first Trump administration and upheld by the Biden administration.
- Product- and sector-specific duties on Chinese imports enacted prior to President Trump’s second term remain in effect in addition to the temporarily revised 30% tariff and, where applicable, the 25% Section 301 tariff.
- The 25% steel and aluminum tariff imposed earlier this year under Section 232 of the Trade Expansion Act of 1962 remains in effect, where applicable. A Chinese import subject to a 25% Section 232 stainless steel and aluminum tariff is, for now, exempt from the temporarily reduced 10% reciprocal tariff.
Taking into consideration the above, under the 90-day tariff reduction deal between the United States and China, product imported from China would be subject to a 20% “fentanyl tariff;” plus a reduced 10% reciprocal tariff; plus a 25% tariff if the product applis under Section 301; plus other applicable category-specific duties that remain in effect. If the product is subject to a 25% stainless steel and aluminum tariff under Section 232, add that 25% tariff and deduct the 10% reciprocal tariff to get the cumulative tariff rate.
Housewares suppliers contacted by HomePage News said they were encouraged by the potential for a long-term trade deal signaled by the U.S.-China 90-day tariff reduction agreement. While acknowledging the benefit of the immediate 115% China tariff relief, some pointed out that the cumulative duties on Chinese goods still present a significant import markup. Others noted that although the 90-day tariff reduction could unleash produced inventory that has been stalled in China, issuing new factory orders remains risky given a relatively narrow, 90-day window to produce, ship and land imports and lingering uncertainty about how the overall tariff will be set after the 90-day pause.
“While the recent reduction in China tariffs is a welcome development, the 90-day window offers limited practical benefit,” said Pamela Stafford, president and CEO of cookware and kitchenware producer Hestan Culinary. “We had already canceled all of our orders, and even if we were to reinstate them, the lead time for shipments exceeds that window. The uncertainty and risk of tariffs rising again remain a major concern.
“That said, I’m hopeful this is a step toward a more permanent agreement between the U.S. and China, one that brings long-term clarity and stability for all of us in the industry,” Stafford added.
David Zrike, president and CEO of tableware supplier R Squared, said, “The reduction is a mixed blessing. Although 30% is lower, it is still not manageable. Programs that were booked at pre-tariff increases will still result in losses, and many customers will not accept even a 30% increase. This is for only 90 days, and there is no way to predict what will happen after that. As a result, it is impossible to price any programs going forward.”
Bill McHenry, president of Widgeteer, which markets kitchenware and tableware, said, “I was pleased to hear the announcement (of the 90-day China tariff reduction). While I believe we can work this into our pricing, I do not want to lose focus on the fact that the (cumulative) tariff is still 55%, and there is typically a 7.5% duty on most of our products. This totals 62.5%, which is still very high. The consumer is still going to see price increases.”
Bill Endres, chairman of kitchen electrics marketer Select Brands, said the company has been working to reduce its reliance on Chinese manufacturing by setting up new production sources in other parts of Southeast Asia.
“(The temporary tariff reduction on Chinese imports) gives you some leeway to fill some of the inventory lag in China if you can eat some of the cost and margin. Suppliers are going to say, ‘Even if I placed an order today, what’s the lead time? Do I still take the risk?’
“It doesn’t change the direction we’re going, and we still need some clarity on what the overall tariff impact will be for other countries in Southeast Asia,” Endres continued. “Long term, it doesn’t change our goal of offshoring (away from China), but we will still be tied to China for a good portion of our business.”
On the retailer side, a Walmart spokesperson told HomePage News, “We are encouraged by the progress made over the weekend and will have more to say during our earnings call later this week.”
A Wayfair spokesperson said, “Thanks to our marketplace model and our diverse network of more than 20,000 domestic and global suppliers, Wayfair continues to be well-positioned to navigate the evolving trade landscape while offering customers the best combination of value, assortment and experience.”
