SHANGHAI, May 14 (Reuters) - German healthcare and

materials group Merck KGaA has dropped a surcharge on

life sciences sector orders within China following the

U.S.-China agreement to pause sky-high tariffs on each other,

the company said Wednesday.

The agreement, announced on Monday, will see U.S. tariffs on

Chinese goods fall to 30% from 145% for 90 days, while China

will reduce tariffs on U.S. products to 10% from 125%.

"Following the joint statement ... on reciprocal tariffs,

our Life Science business sector has discontinued the temporary

surcharge on orders within China, effective immediately," a

Merck spokesperson told Reuters in response to queries about

fees.

Chinese media first reported about the surcharge being

dropped.

Merck, whose products include chemical reagents, had

implemented "temporary" surcharges in select markets, with the

amount varying by country, in response to tariffs affecting its

operations such as supply chain and procurement costs, the

spokesperson said.

"Unlike a price increase, the temporary surcharge gives us

the flexibility to adjust or remove it if the external

environment changes," the spokesperson added.

The person declined to comment on orders.

The tariff drops have been welcome by some in the

pharmaceutical industry.

A spokesperson for weight loss drugmaker Shanghai Benemae

Pharmaceutical told Reuters that it was notified on Wednesday

that Merck's fees would not be collected.

It uses some reagents and other materials manufactured in

the U.S. by the likes of Merck and Thermo Fisher Scientific ( TMO )

.

"Tariffs fall down to the previous levels, our company then

isn't affected," the spokesperson for the Chinese firm said.

A spokesperson for Thermo Fisher did not respond to a

request for comment on the announcement of the Chinese

government tariffs being lowered.