China announced on July 27 that the United States had pledged to cap replacement tariffs on Chinese goods at 20%, with the current duty standing at 12.5%. This commitment, revealed during bilateral trade talks, signals that Washington has 7.5 percentage points of room for additional increases before reaching the stated ceiling. The new rates replace global duties of 10% that expired on July 24 and come amid a U.S. investigation into China’s manufacturing overcapacity, which could trigger further levies.

The announcement follows the Trump administration’s effort to rebuild a protectionist wall after the Supreme Court struck down earlier levies. Beijing emphasized that it will monitor U.S. actions closely and reserve the right to take countermeasures. It also criticized Washington for imposing tariffs over forced‑labor concerns, noting China’s comprehensive legal framework against the practice.

The tariff truce, originating from the 2021 summit between Donald Trump and Xi Jinping in Busan, South Korea, has eased tensions, suspending some tariffs and rare‑earth curbs. The one‑year deal, set to expire in November unless extended, has led to a partial reduction of effective rates on Chinese imports into the U.S.