The U.S. and China 90-day tariff truce

May 21, 2025

The U.S. and China 90-day tariff truce

NPA Insights, May 2025

Hi all!

In April 2025, container shipments from China to the U.S. fell sharply following the imposition of steep U.S. tariffs, including a 145% levy on Chinese goods. The new trade measures triggered a more than 20% drop in Chinese exports to the U.S., a stark reversal from the 9% increase recorded in March.


The sudden collapse in trade led to widespread shipment cancellations and left thousands of containers sitting idle.


As a result, U.S. retailers and manufacturers could face stockouts, while importers may be forced to seek alternative suppliers in Southeast Asia, Mexico, or domestically; introducing added delays, logistical complexity, and increased costs that are likely to push consumer prices higher.

AND NOW SOME OPERATIONS NEWS

This Operations Update is provided with support from:

The State of Manufacturing


The Manufacturing PMI Index contracted for the second straight month in April, slipping to 48.7%—a 0.3-point decline from March's reading.



The New Orders Index contracted for the third consecutive month, following a brief three-month stretch of growth. Meanwhile, the Production Index declined by 4.3%.


China has confirmed that U.S. chipmakers outsourcing manufacturing, such as AMD and Qualcomm, will be exempt from its new retaliatory tariffs, easing concerns across the semiconductor industry.


However, firms with U.S.-based fabs may face steep duties of 84% or more, prompting potential shifts in supply chain strategy.



The United States and China agreed to a 90-day tariff truce, significantly easing trade tensions. As part of the deal, the U.S. reduced tariffs on Chinese goods from 145% to 30%, while China lowered duties on U.S. imports from 125% to 10%.


Additionally, the U.S. made a substantial cut to the "de minimis" tariff on low-value shipments from China, lowering the rate from 120% to 54% for items under $800, and to 30% for commercial deliveries.


These changes signal a positive turn in U.S.–China trade relations, with several industries already seeing immediate benefits from the reduced tariffs.

Nearly half of metal fabricators believe new tariffs could strengthen U.S. manufacturing, pointing to early signs of reshoring. As demand grows, continued funding for the Manufacturing Extension Partnership (MEP) is critical—yet support for many centers remains uncertain.


Our friends at MassMEP are a valuable resource for guidance and support for Massachusetts-based manufacturers navigating this shifting landscape.



STARTUP STUFF

Boston startups and tech firms raised $445.5 million in April; fewer deals than the previous month, but marked by larger funding rounds, continuing 2025’s strong start.


Check all the April M&A deals in Boston.


Nano Dimension acquired Waltham-based U.S. 3D printer manufacturer Markforged. This announcement follows closely on the heels of its recent acquisition of Desktop Metal, giving the company ownership of two local 3D printing firms.


Pure Lithium, a Boston-based battery technology company, announced plans to develop its first industrial-scale manufacturing facility. The company also secured a letter of interest for $300 million in debt financing.

This is always an incredible event for families, robotics enthusiasts, and anyone curious about robotics to experience a wide variety of robots firsthand. Add it to your calendar.


Join MassRobotics for their 8th Annual Robot Block Party! This year’s free, family-friendly event takes place on Saturday, September 27, 2025, featuring robot demonstrations, hands-on interactions, games, and much more. Don’t miss out!

Sign up now!



OUR MONTHLY SURVEY

In our March survey, we asked which new AI-related positions your company has opened in the past 12 months.


Most of our respondents said that they opened roles for Machine Learning Engineers (16.3%) and Prompt Engineers (14%).

In today’s evolving investment climate, access to capital remains a critical challenge for startups and growing businesses.


With shifting investor priorities, increased deal scrutiny, and fluctuating valuations, face a more complex funding environment than ever before.


So we'd like to know:

If you’re currently seeking funding, what’s your biggest challenge right now?
ICYMI
image_1b0fef image


Robots make burgers and serve meals in 27 seconds at a U.S. restaurant, speeding up fast food preparation.

EvenFastFoodIsAskingThemToSlowDown!

(Source: Interesting Engineering)

giphy image


The U.S. plans to deploy robot swarms to build smarter aircraft with speed, precision, safety.  ThisSwarmWon'tRuinYourPicnic

(Source: Interesting Engineering)

giphy image


Physicists have developed a new molecule, primarily composed of naturally occurring elements like carbon, sulfur, and nitrogen, that could further shrink and accelerate computer technology.

SoSharpIt’sConductingItselfToTheTop

(Source: Interesting Engineering)

Cheers,
Jurgen
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