After a month of intense negotiations and market-shaking volatility, the White House has just provided the most significant update to the U.S.-China trade framework this year.
On Tuesday, President Trump formally signed two executive orders that deliver both immediate financial relief and long-term stability for importers. The first order provides a 10% tariff cut for all Chinese goods, and the second locks in the current "trade truce" for another full year.
This is a major development for every business managing a trans-Pacific supply chain. Here is a breakdown of what was signed and, most importantly, what it means for your bottom line.
1. The Universal 10% Cut (Fentanyl Tariff)
First, the immediate good news. The administration has officially reduced the "fentanyl tariff" from 20% to 10%.
This is the most critical detail: This tariff applies to all goods exported from China to the United States, with no exemptions.
Effective for any goods entering the U.S. market on or after 00:01 EST on November 10, 2025, the baseline tariff for every single product you import from China is being cut by 10 percentage points. This is a direct, tangible cost saving that will immediately impact your landed cost and profit margins.
2. The One-Year Stability (Reciprocal Tariff Truce)
The second executive order addresses the 10% "reciprocal tariff." The "ceasefire" that kept this rate at 10% (instead of a much higher 34%) has been officially extended for one year, until November 10, 2026.
This is not a new cut, but it is a crucial win for stability. It removes the uncertainty and threat of a massive tariff snap-back, giving businesses a predictable 12-month window for their 2026 sourcing, budgeting, and pricing strategies.
How to Calculate Your TOTAL Tariff (The "Tariff Stack")
While this news is overwhelmingly positive, it does not mean tariffs are simple. The "tariff stack"—the complex, overlapping layers of different duties—remains in place.
This 10% cut is a relief, but it's crucial to understand your total exposure. To calculate your actual duty, you must still account for all five types of U.S. tariffs on China.
Here is the updated calculation for your products post-November 10:
- The Fentanyl Tariff (10%): This is your new baseline. All goods from China pay this.
- The Reciprocal Tariff (10%): This is stacked on top of the Fentanyl Tariff. Your product pays this unless it has a specific exemption. (Key exemptions include Section 232 products like steel/aluminum and certain consumer electronics like mobile phones).
- Section 301 Tariffs (7.5% - 100%): This is the big one. If your product is on one of the four Section 301 lists, this percentage is stacked on top of all other applicable duties. This is the punitive tariff that has hit Chinese electric vehicles, batteries, and medical supplies the hardest.
- Section 232 Tariffs (25% - 50%): This applies to strategic goods like steel, aluminum, copper, and auto parts. Crucial Rule: The 10% Reciprocal Tariff does not stack with 232 tariffs. The 232 tariff (e.g., 50% on steel) replaces the 10% reciprocal duty.
- Anti-Dumping/Countervailing Duties (AD/CVD): This is the final, product-specific check. If your product is subject to an AD/CVD case, those duties are stacked on top of everything else.
The Linktrans Takeaway: What This Means for You
This is the best-case scenario we could have hoped for: a significant, immediate cost reduction combined with a full year of planning stability. The 10% universal cut provides immediate relief, and the one-year truce gives you the breathing room to finalize 2026 budgets.
However, the complexity is not gone.
As the "Tariff Stack" analysis shows, this is still a dangerous minefield. Calculating your true landed cost is more complicated than ever. A miscalculation on a Section 301 or AD/CVD duty can still wipe out all the savings from this new cut.
Now more than ever, you need a partner who understands this complexity. At Linktrans, our team doesn't just move boxes; we navigate the complex "tariff stack" for you. We provide clear, all-in-one quotes that account for these new changes so you can plan your 2026 with confidence.
How does this 10% cut and one-year truce change your strategic planning for 2026? Contact our experts today to run the new numbers for your supply chain.
05 Nov, 2025
