Trump extends US-China tariff pause by 90 days
What's the story
The United States and China, the world's two biggest economies, have agreed to extend their trade truce until November 10. The decision comes just hours before a significant increase in tariffs was due to take effect. In announcements from both countries, it was revealed that the previously announced triple-digit tariffs on each other's goods would be suspended for another 90 days.
Truce details
Truce to give both countries more time to negotiate
The tariff truce will see the US maintain its 30% tariff on Chinese imports, while China will keep a 10% tariff on American goods. The extension is expected to give both countries more time to negotiate "remedying trade imbalances" and "unfair trade practices." The White House cited a nearly $300 billion trade deficit with China in 2024 as the largest among all its trading partners.
Diplomatic dialogue
China urges US to lift 'unreasonable' trade restrictions
A spokesperson for the Chinese embassy in Washington emphasized that "win-win cooperation between China and the United States is the right path; suppression and containment will lead nowhere." The statement also urged the US to lift its "unreasonable" trade restrictions, collaborate for mutual benefit, and ensure global semiconductor production stability.
Historical context
US-China trade war
Trade tensions between the US and China escalated in April when President Donald Trump imposed new tariffs on goods from several countries, including China. In retaliation, Beijing imposed its own tariffs, leading to a tit-for-tat battle that saw tariffs rise into triple digits and nearly halt trade between the two nations. However, an agreement was reached in May to suspend some of those measures.
Current negotiations
Trade flows affected this year
The US and China are still discussing issues like access to China's rare earths, its Russian oil purchases, and US restrictions on advanced technology sales to China. Despite the truce, trade flows have been affected this year. US imports from China in June were nearly halved compared to June 2024, while American exports to China fell roughly 20% year-on-year for the same period.