Beijing disclosed a 20% ceiling on replacement tariffs for Chinese goods on July 27, days after the Trump administration imposed new 10% to 12.5% tariffs on most U.S. imports under a revised legal framework.
China’s Commerce Ministry said on July 27 that the United States agreed to cap replacement tariffs on Chinese goods at 20%, the first public disclosure of a specific ceiling in bilateral trade talks. The cap is above the current 12.5% rate, leaving room for Washington to raise duties while staying within that limit. The disclosure came after the Trump administration imposed new tariffs of 10% to 12.5% on goods from more than 60 trading partners on July 24, covering 99.4% of U.S. imports, and after a February 2026 U.S. Supreme Court ruling invalidated certain tariff authorities under IEEPA, prompting a shift to Sections 338 and 301 of the Tariff Act. Earlier negotiations had included a November 2025 arrangement that reduced some duties to 10% and extended suspensions until November 2026, and a May 2026 summit that set up a joint trade council and mechanisms for $30 billion in tariff rollbacks. Crypto markets have so far shown little sustained reaction, though both reports say the bigger risk may come through inflation, Federal Reserve policy and the November 2026 deadline for current suspension arrangements.