U.S. Announces Major Trade Deals with UK and China

The U.S. made two major trade announcements, signaling a shift in its global economic strategy with both the UK and China.

Last week, the White House unveiled a broad bilateral trade deal between President Donald Trump and UK Prime Minister Keir Starmer aimed at expanding U.S. market access. Days later, it revealed a 90-day tariff agreement with China to reduce retaliatory tariffs. The moves come amid ongoing concerns about inflation, global supply chain vulnerabilities, and the impact of trade policy on domestic producers.

The U.S.-UK trade agreement marks what the White House called a “historic” shift in transatlantic economic cooperation. Announced on the 80th anniversary of Victory Day, the deal includes expanded access for American agricultural and aerospace exports, a cap on auto tariffs for UK manufacturers, and the elimination of U.S. tariffs on UK-origin steel and aluminum. Taking effect immediately in key areas, the agreement is expected to generate $5 billion in new market opportunities for American exporters, including $700 million in ethanol, expanded access to the UK’s procurement market, and a secure supply chain for pharmaceutical products. It also introduces streamlined customs procedures and elevated standards for labor, the environment, and intellectual property.

Under the terms of the agreement with China, effective May 14, 2025, the United States will suspend its 34% reciprocal tariff imposed on April 2, 2025 – which had pushed total tariff burdens on some goods above 145% – and will instead apply a temporary 10% tariff for a 90-day period. Tariffs imposed prior to April 2, 2025 will remain in effect, including Section 301, Section 232, and tariffs imposed in response to the fentanyl national emergency invoked pursuant to the International Emergency Economic Powers Act, and Most Favored Nation tariffs.

China has agreed to mirror the pause by suspending its 34% tariff on U.S. goods, announced on April 4, 2025, for a 90-day period, while maintaining a 10% baseline tariff during that time. Alongside the tariff rollback, China will lift export restrictions imposed after April 2, including measures targeting rare earth minerals and magnets critical to high-tech manufacturing. The mutual easing of trade barriers is intended to reduce tensions and create space for continued negotiations.

While business groups largely welcomed both moves, some analysts caution that the temporary nature of the agreements raises concerns about future disruptions. Shifting tariff schedules have added volatility to global supply chains, affecting pricing, sourcing, and investment timelines.

Any health system can tailor SRS to their suppliers and items in order to assess exposure to tariffs and other risks, gain supply chain transparency, and move from reactive to proactive risk mitigation. Contact SRS Support (support@supplyrisk.com).

The following SRS reports can be tailored to the items you buy to assess tariff exposure for your health system:

• “Products Tariffs – Special Report” – details suppliers sourcing from tariffed countries (in the Prevent dashboard).
• “Products by Country (Tariff Risk)” – choose any country to see which items you buy are manufactured there (in the Prevent dashboard).
• “Products Subject to Section 301 China Tariffs” – downloads current section 301 tariffs on healthcare item made in China (in the Prevent dashboard).
• “Products Sites and Risks” – lists manufacturing location for all items you buy from the supplier (in the Prevent dashboard after you drill down on a supplier).
• “Supplier Geopolitical Summary” – summarizes exposure for all countries (in the Respond dashboard).

If you have not yet tailored SRS for the items you buy, it’s easy to do so with an SRS subscription.

For more information, see:

The White House, Fact Sheet: U.S.-UK Reach Historic Trade Deal, May 8

Supply Chain Dive, US, China agree to reduce tariff rates for 90 days, May 12

Reuters, Global stocks rally after US, China pause tariff war, but uncertainty remains, May 12

RV Industry Association, Latest Tariff Developments, May 12

Associated Press, US and China reach a deal to slash sky-high tariffs for now, with a 90-day pause, May 14

Supply Risk Solutions, Tariffs Deepen Pressure on U.S. Healthcare Supply Chains, May 7

Supply Risk Solutions, U.S. Tariffs Drives “Foreign Trade Zone” Surge, April 30

Supply Risk Solutions, U.S. Launches Tariff Probes Into Chip and Pharmaceutical Imports, April 17

Supply Risk Solutions, Supply Chains Upended by Historic Tariffs, April 3

Supply Risk Solutions, Manufacturers Plan to Pass Tariff Costs on to Their Customers, April 1

Association of Supply Chain Management, Relentless Tariffs and a Supply Chain Crossroads, March 28

Manufacturing.Net, Survey Uncovers Tariff Impact on Manufacturers and Their Adjustment Strategies, March 12

Supply Risk Solutions, Impact of Upcoming Tariffs on Healthcare Sourcing, March 11

Supply Risk Solutions, Trump’s Partial Tariff Exemptions Leave Majority of Canada-Mexico Duties in Place, March 7

Supply Risk Solutions, U.S. Tariffs on Canada and Mexico Take Effect, March 4

Supply Risk Solutions, U.S. Unveils New Tariff Plans, February 28

Supply Risk Solutions, Trump Confirms Canada and Mexico Tariffs Will Take Effect on March 4, February 25

Supply Risk Solutions, Trump Proposes 25% Tariffs on Cars, Chips, Pharma Products, February 20

Supply Risk Solutions, China Counters U.S. Tariffs with Targeted Tariffs, Export Controls, and Investigations, February 4

Supply Risk Solutions, Trump Delays Tariffs on Mexico and Canada, February 3

Supply Risk Solutions, U.S. to Impose Tariffs on Key Trading Partners Feb. 1, February 1

Supply Risk Solutions, Trump’s Tariff Policies Spark Global Uncertainty, January 27

Supply Risk Solutions, Trump Proposes 25% Tariffs on Canada and Mexico Starting February 1, January 21

Supply Risk Solutions, Tariff Planning Requires Product Transparency, January 13

Supply Risk Solutions, U.S. Tariff Plans Bring Urgency to Knowing Product Manufacturing Locations, December 2

Supply Risk Solutions, Tariffs Push Manufacturers to Rethink Supply Chain Strategies, November 15

Supply Risk Solutions, Tariffs Spur Urgency to Understand Product Manufacturing Locations, November 11

Supply Risk Solutions, List the Products You Buy That Are Subject to China Import Tariffs, October 28

White & Case, United States Finalizes Section 301 Tariff Increases on Imports from China, September 17