Navigating the 90-Day Tariff Pause: Strategic Implications for Small Businesses

In May 2025, the United States and China agreed to a 90-day suspension of certain tariffs, reducing U.S. duties on Chinese imports from 145% to 30%, while China lowered its tariffs on U.S. goods from 125% to 10%. This temporary reprieve aims to de-escalate trade tensions and provides a brief window for businesses to adjust their strategies.

Key Details of the Tariff Pause

• Duration: The suspension is set for 90 days, with potential for reimplementation if negotiations falter.

• Scope: While some tariffs are paused, a 10% universal tariff and a 20% surcharge related to fentanyl concerns remain in effect.

• Ongoing Negotiations: The U.S. is in discussions with 18 key trading partners, with the possibility of reinstating tariffs if agreements are not reached.

Impact on Small Businesses

Small and medium-sized enterprises (SMEs) are particularly vulnerable to tariff fluctuations due to limited resources and supply chain flexibility. The temporary reduction offers short-term relief but does not eliminate the challenges posed by ongoing trade uncertainties.

Strategic Considerations for SMEs

1. Explore alternative suppliers outside of China to mitigate future tariff risks.

2. Consider stockpiling essential goods during the tariff pause to buffer against potential reinstatements.

3. Assess the cost implications of tariffs and adjust pricing strategies accordingly.

4. Stay informed about trade negotiations and potential policy changes that could affect operations.

The 90-day tariff suspension provides a limited opportunity for SMEs to reassess and adapt their strategies in response to evolving trade dynamics. Proactive planning and diversification are crucial to navigate the uncertainties of international trade policies.

For help with adjusting strategies amidst the trade war, visit www.aventienterprises.com/advisory.

Sources: Marketwatch: Bessent warns some steep ‘liberation day’ tariffs may return, dismisses Moody’s downgrade - MarketWatch The Guardian: This pause in the trade war will be brief. Small businesses, plan accordingly | Gene Marks | The Guardian