What the 90-Day U.S.-China Tariff Pause Means for Manufacturers

The recent U.S.-China tariff pause offers a brief window of relief for global supply chains. As part of the 90-day agreement, the U.S. has reduced additional tariffs on Chinese goods from a peak of 145% to 30%, while China has lowered its retaliatory tariffs from 125% to 10%. For many businesses, this means a short-term reduction in landed costs and a temporary sense of stability. 

But is it just temporary? The tariffs haven’t been canceled. If progress stalls, those steep duties could return in full once the 90-day window closes. Even President Trump acknowledged that while he doesn’t expect tariffs to return to their previous highs, it’s still a possibility.

That uncertainty is what makes this moment so difficult for manufacturers and suppliers. How do you plan production, invest in tooling, or commit to new sourcing strategies when the rules could change again in just a few months? The U.S.-China tariff pause may offer some time, but it doesn’t remove the risk. The next 90 days are important, and the actions you take can determine how your supply chain holds up in the future. 

U.S.-China Tariff Pause: What Just Happened?

In a surprise move, the U.S. and China agreed to a 90-day tariff pause, offering temporary relief from the increase in tariffs. This U.S.-China tariff pause reduces the tariffs the two countries had imposed on each other. 

Here’s what changed under the new agreement:

• The U.S. reduced its additional tariffs on Chinese goods from a combined peak of 145% down to 30%.

• China responded by cutting its retaliatory tariffs on American exports from 125% to 10%.

• Tariffs implemented before April 2, including those under Section 301, will remain in place.

While the rollback is significant, it’s important to understand that these reductions are temporary. The U.S.-China tariff pause is not a long-term resolution, but rather a short-term suspension intended to give both sides time to negotiate further. If talks fail, the tariffs could return to previous levels, and with very little warning.

For companies sourcing from China or exporting to the Chinese market, this creates a narrow window to reassess risk, adjust supply chain strategy, and prepare for whatever happens next.

Why This Creates Major Challenges for Manufacturers

While the U.S.-China tariff pause looks like good news, it creates just as many questions as answers.

The biggest issue is uncertainty. A 90-day window isn’t enough time to make meaningful investments or shift production strategies with confidence. Manufacturers are still asking the same question: Do we scale up? Do we hold off? What happens if tariffs come back overnight?

This kind of unpredictability makes it difficult to plan for the future. Prior to the U.S.-China tariff pause, you were most likely looking at diversification, but is that important now? Companies are questioning if they should re-engage with their Chinese suppliers or if they should keep moving forward with diversification plans, just in case the higher tariffs return. There’s no clear answer, and that’s exactly the problem.

Even for factories like us, it’s difficult to commit resources. While we (and other suppliers) want to keep supporting our customers, it’s nearly impossible to invest when it’s not stable. While our facility in Thailand gives us flexibility outside of China and supports the China+1 strategy, it’s difficult to know where we should be placing additional investments during times of uncertainty. 

What Companies Should Do Over the Next 90 Days

The U.S.-China tariff pause has opened a short window of opportunity, but it’s one that requires proactive planning. While this temporary relief may reduce costs in the short term, it should not be mistaken for long-term stability. 

The next 90 days are about preparing your supply chain for whatever comes next, whether tariffs stay low or bounce back to previous highs. Here are 6 things that companies should be doing now:

1. Evaluate Your China Exposure

First, understand how much your supply chain relies on China. What percentage of your BOM cost comes from China? How would your landed cost change if tariffs returned? Map out your exposure so you know where you’re vulnerable.

2. Continue Diversifying Through China+1

The U.S.-China tariff pause shouldn’t stop ongoing diversification efforts, but it should accelerate them. Use this time to identify and qualify alternate suppliers in countries like Thailand, Vietnam, or India. Even if China remains your primary source, having a secondary option can protect against future uncertainty.

3. Run Cost Scenarios With and Without Tariffs

Don’t assume tariffs will stay low. Run financial models that show how your pricing, margins, and logistics costs change at different tariff levels. This will help you make better decisions about pricing, contracts, and inventory.

4. Negotiate Flexibility Into Supplier Agreements

Talk to your suppliers about adding terms to your supplier agreement that give you more flexibility, like shorter lead times or minimum order quantities that don’t lock you in. 

5. Audit Your Supply Chain Partners

Use this moment to re-evaluate your current vendors. Are they responsive? Are they proactively planning for risk, or just hoping things settle down? The U.S.-China tariff pause is a chance to make sure you’re working with partners that can adapt quickly, not ones that leave you exposed.

6. Stay Engaged with Policy Developments

The trade environment is changing fast. Assign someone on your team who can track policy updates, tariff announcements, and country-of-origin rule changes. Don’t be caught off guard when the 90 days are up.

Our Strategy at EPower Corp

At EPower Corp, the U.S.-China tariff pause doesn’t change our long-term direction, it just reinforces why we’re on the right path. We’ve already been investing in Thailand to support the growing need for China+1 manufacturing strategies, and we will continue to make investments in Thailand. 

For us, Thailand is not a backup plan, but it’s part of our mission to support our customers in building more resilient and flexible supply chains. It allows us to offer production outside of China, mitigate tariff exposure, and adapt to shifting global trade dynamics.

We’re also using this time to expand our customer base beyond the U.S. While we’ll always support our current and future American clients, we’re looking to partner with companies that don’t ship to the U.S. and are less exposed to tariff-related uncertainty. Many of these customers, especially in Europe, are looking for stable, long-term manufacturing partnerships, and we are set up to offer this. 

In short, we’re not waiting to see what happens after the 90-day pause. We’re moving forward with a strategy built for long-term stability, not short-term reaction. 

If you have questions and would like to speak with us about your manufacturing strategy, then we would be happy to speak with you. Feel free to reach out today.