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ARTICLE · 22 OCTOBER 2025

Facing the fallout: how China-US tariffs are disrupting fixed-price contracts

What can you do if you are locked into a fixed-price supply contract?

ChinaCorporate/Commercial Law

The continuing tariff escalation between China and the United States has begun to hit supply chains in ways many companies didn't anticipate-even those with long-standing contracts in place.

As of October 2025, U.S.-origin goods entering China remain subject to retaliatory tariffs of around 10% under an extended truce, while the United States maintains average duties of roughly 55% on China-originated products and has announced an additional 100% tariff-effective November 2025-in response to Chinese export controls.

It remains to be seen how China will respond to this escalation. However, Beijing has long signaled its unwillingness to yield under pressure, suggesting that additional punitive tariffs from the Chinese side are likely to follow.

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