In a last-minute decision, the US and China have agreed to extend their trade truce for an additional 90 days, just hours before tariffs on each other’s goods were set to increase. US President Donald Trump signed an executive order to keep the current strategy in place until November 10, while China confirmed its agreement to continue the pause. This means Chinese imports will remain subject to a 30% tariff, and US imports will maintain a 10% levy.
As tariffs had threatened to soar up to an astonishing 145% earlier this year, the extension provides much-needed breathing room for both economies. The White House mentioned that this pause is critical for ongoing discussions about addressing trade imbalances and unfair practices, especially given a massive trade deficit of nearly $300 billion with China in 2024.
China's embassy emphasized cooperation, stating that "win-win cooperation" is crucial, and urged the US to lift its “unreasonable” trade restrictions. They also called for collaboration that would benefit businesses on both sides and ensure stability in global semiconductor production.
Business owners, however, remain anxious. One entrepreneur expressed concerns about the unpredictability of future tariffs, saying, “There’s no way to plan for the future of the business,” highlighting the challenges in establishing pricing strategies without clear guidelines.
Despite the truce, 2024 has seen significant drops in trade volumes. US imports from China fell nearly 50% compared to the previous year, indicating that the tensions still impact economic activities. Moving forward, discussions will cover issues like access to rare earths and sales of advanced technology to China, as both countries look to navigate through their tangled economic relationship.
As tariffs had threatened to soar up to an astonishing 145% earlier this year, the extension provides much-needed breathing room for both economies. The White House mentioned that this pause is critical for ongoing discussions about addressing trade imbalances and unfair practices, especially given a massive trade deficit of nearly $300 billion with China in 2024.
China's embassy emphasized cooperation, stating that "win-win cooperation" is crucial, and urged the US to lift its “unreasonable” trade restrictions. They also called for collaboration that would benefit businesses on both sides and ensure stability in global semiconductor production.
Business owners, however, remain anxious. One entrepreneur expressed concerns about the unpredictability of future tariffs, saying, “There’s no way to plan for the future of the business,” highlighting the challenges in establishing pricing strategies without clear guidelines.
Despite the truce, 2024 has seen significant drops in trade volumes. US imports from China fell nearly 50% compared to the previous year, indicating that the tensions still impact economic activities. Moving forward, discussions will cover issues like access to rare earths and sales of advanced technology to China, as both countries look to navigate through their tangled economic relationship.
