It’s been another eventful week in the world of tariffs. This time however, there’s some potential good news for importers. Following a meeting between U.S. President Trump and China’s President Xi Jinping, the two sides achieved progress on a multi-point trade deal that could ease tensions. In addition, the U.S. Supreme Court heard its first oral arguments in the IEEPA tariff litigation, which could eventually bring relief to importers if those tariffs are overturned.
US Trade and Economic Deal with China
A successful meeting between the US and China’s presidents resulted in a few specific tariff related actions:
- The IEEPA Fentanyl tariff rate for Country of Origin China products will go from 20% to 10% on November 10th.
- The IEEPA Reciprocal tariff rate for Country of Origin China products will stay at 10% (Continuing the pause of China’s country specific rate of 34% for another year)
- USTR will further extend the Section 301 tariff exclusions that were due to expire on November 29th. The exclusions will now expire November 10, 2026
Other important points from the meeting, and subsequently released White House Fact Sheet include:
- U.S. will suspend the Section 301 investigation on China’s maritime and logistics industry for one year. China has reciprocated with also agreeing to remove countermeasures for a one year period.
- China agreed to buy agricultural products and begin the process of purchasing American Energy
- China agreed to delay its newest export controls on rare earth minerals for a one-year period.
- White House Fact Sheet available HERE
- Executive Order modifying the IEEPA Fentanyl tariff from 20% to 10% available HERE
- Executive Order maintaining China’s current IEEPA Reciprocal tariff rate of 10% available HERE
IEEPA Tariff Litigation
Court Case Milestones
- February 1, 2025: First IEEPA tariffs announced via Executive Order
- May 28, 2025: the US Court of International Trade ruled the tariffs imposed under IEEPA were unlawful. This decision was appealed and a stay granted to keep the tariffs in place while the appeal proceeded.
- August 29, 2025: The US Court of Appeals for the Federal Circuit also ruled the tariffs illegal. Decision was once again appealed and a stay granted, so tariffs remain in place.
The Supreme Court began hearing oral arguments in the case this week, marking an important next step in the process. It’s still too early to tell which side may have the upper hand, but a decision is expected before the Court’s summer recess in June or July 2026. While some early reports suggested a ruling could come by the end of 2025, it now seems more likely that we will need to wait until at least Q1 of 2026 for any kind of resolution.
In the meantime, the tariffs remain in effect and continue to be collected. If the Court ultimately strikes them down, importers will need to be ready to navigate the Post Summary Correction (PSC) and Protest processes and timelines— the key mechanisms for requesting refunds on affected entries. Understanding those procedures and timelines will be critical to recovering any eligible duties.
The Laufer Group team will continue to monitor these changes and provide updates on any significant developments.
Please check our INSIGHTS page for previous updates and to find more details on other active tariffs and open regulatory items.