On May 12, the US and China agreed to a 90-day pause on most tariffs the countries imposed on one another over the last month. US tariffs on Chinese imports would decrease to 30% from 145%, and Chinese tariffs on US goods would fall to 10% from 125%, the countries said in a joint statement. Both countries affirmed the importance of their trade relationship. Officials from both countries met in Geneva over the weekend for in-person talks.
House Republicans on May 12 released details of their tax package in a 389-page plan, which would extend provisions of the Tax Cuts and Jobs Act (TCJA) beyond their December 31 expiration date. The legislation features new business and individual tax proposals, including “no tax on tips” and certain other tax proposals offered by President Trump; “bonus” depreciation and other business investment incentives; a new retaliatory measure to address “unfair foreign taxes;” a new $30,000 cap for individual itemized deductions for state and local taxes; and various revenue-raising measures that include changes to clean energy tax credits.
House approval of the amended FY 2025 budget resolution cleared the way for substantive action by House and Senate Republicans to extend TCJA provisions and advance other parts of President Trump’s legislative agenda. Narrow majorities in Congress mean Republicans can lose only three votes in the House or Senate to pass a final reconciliation bill.
There was some movement on trade last week. On May 8, the president announced a trade deal with the United Kingdom, the first agreement since he announced his sweeping tariffs announcement on April 2. Under the deal, the 10% tariff on UK goods will remain, while some products would be exempted. As it relates to auto tariffs, the first 100,000 vehicles imported into the US by UK car manufacturers each year are subject to the reciprocal rate of 10%, and any additional vehicles each year are subject to 25% rates. Tariffs on steel and aluminum would be eliminated.
Negotiations with several countries, along with some back-and-forth exchanges and some adjustments to address market turmoil or economic concerns, have been ongoing since the president’s “Liberation Day” announcement. As part of this announcement he set a baseline 10% tariff on most imports from all countries, with higher additional country-specific "reciprocal" tariffs on dozens of countries based on perceived trade imbalances that were set to go into effect April 9.
Instead, President Trump on April 9 announced a 90-day pause on the additional country-specific reciprocal tariffs for certain countries, with a10% base tariff remaining in effect on most imported goods (with the exception of certain exempt goods) from all countries (except Canada, Mexico and China). Goods covered by the United States-Mexico-Canada Agreement (USMCA) would continue to remain exempt from tariffs, while non-USMCA-compliant goods would be subject to a 25% tariff.
Beyond tariffs, President Trump has been moving at a rapid pace since his inauguration, signing nearly more than 100 executive orders (EOs). The president is also focusing on a move toward deregulation, particularly around energy policy. Executives will want to sort through the president’s latest moves to understand what changes mean for their industries, where to find opportunity and how to mitigate risk. Learn more about the administration’s policy changes, what it means for business and how you can prepare. Check back for updates.
May 12, 2025
The US and China agreed to a 90-day pause on most tariffs each country imposed on the other over the past month.
- House Republicans unveiled the full text of their tax bill.
May 8, 2025
- President Trump announced a trade agreement with the United Kingdom.
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100 days in: What executives are saying now (insights from PwC’s Pulse Survey) | Monday, June 9, 4:00-5:00 p.m. ET
Join our webcast as we share the latest insights on what’s top of mind for executives after the administration’s first 100 days in office. We’ll explore policy changes and the impact on business plans and strategy, opportunities executives see, risks they’re facing and what they’re doing to drive growth and stay competitive. We’ll look at real-time data from our Pulse Survey to understand what executives are thinking right now.
“We can expect a lot of change with the new administration, and that means both risk and opportunity. The best thing to do is to prepare, prepare, prepare. Be proactive and agile and think about who across your company you might need to work with to take advantage of what’s coming.”
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Real-time scenario framework: PwC’s approach to tariffs and supply chain
Global trade is changing. With new tariffs, shifting policies, and increasingly complex supply chains, the challenge is not just to react swiftly, but to make strategic decisions that keep you ahead. PwC’s approach to tariffs and supply chain through the real-time scenario framework is your window into making smart moves to manage risks and capture opportunities. We can help you understand what tariff and trade disruptions mean for your business and your industry, both in the short term and in the future – and what you can do to stay competitive.
PwC’s real-time scenario framework
