China says US pledged to cap tariffs on Chinese goods at 20%

China said on Monday that the US had committed during bilateral trade talks to limit replacement tariffs imposed on Chinese goods to no more than 20%.

The Commerce Ministry said the current US replacement tariff on Chinese products stands at 12.5%, after Washington announced final measures under a Section 301 investigation concerning imports allegedly linked to forced labor.

The Office of the US Trade Representative announced the measures on July 23, imposing additional tariffs on goods from 60 economies, including a 12.5% tariff on Chinese imports.

Beijing strongly opposed the decision, describing the investigation and tariffs as acts of unilateralism and protectionism.

The ministry said Washington had repeatedly indicated that Section 301 tariffs would replace duties previously imposed under the International Emergency Economic Powers Act, or IEEPA, as well as a Section 122 import surcharge, after those measures were ruled invalid.

“The US side explicitly committed during China-US economic and trade consultations that replacement additional tariffs on Chinese goods would not exceed 20%,” the ministry said.

It added that its countermeasures against the first round of US tariffs related to fentanyl and so-called reciprocal tariffs remain in effect.

The ministry said it would closely monitor and assess further US measures and reserved the right to take all necessary action.

Beijing also urged Washington to remove unilateral tariffs and continue negotiations on the basis of mutual respect, equality and mutual benefit.

The statement marks China’s public disclosure of a ceiling allegedly agreed during trade negotiations, although the US has not separately announced the 20% limit.