US and China reportedly agree to critical extension, preventing tariff surge on the world's two largest economies
Asia
ChinaFacebookTweetLink
Follow
The United States and China agreed to pause tariff hikes on each other's goods for an additional 90 days, according to multiple reports citing White House officials. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world's two largest economies.
The news, first reported by CNBC, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It's unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs.
It also comes after Trump imposed a slew of 'reciprocal' tariffs on trading partners around the world, which have raised the United States' effective tariff rate to levels not seen since the Great Depression.
CNN reached out to White House officials for comment.
Higher tariffs on Chinese goods, America's second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay — or already are paying — because of increased import taxes Trump enacted.
This is a developing story. It will be updated.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
2 minutes ago
- CNBC
A technician's take: Berkshire Hathaway is primed for a comeback
Since the May 3 Berkshire Hathaway annual meeting in which Warren Buffett said it was time for him to start stepping back, the stock has suffered a steady decline. Technician Frank Cappelleri said Wednesday on CNBC's " Worldwide Exchange " that the stock is "extremely oversold and that's only happened a few times in the last few years, we're about to see another rally." Cappelleri, the founder of CappThesis, correctly called the stock's 15% rise early this year. During that run-up, the S & P was flat and the XLF SPDR Financials ETF was up half as much as Berkshire Hathaway. Then the stock began to fall. Since the May high, the stock is down 12%. "When we've seen down patterns like we've seen recently in this stock, we have seen recoveries" he said. This all comes amid reports details on a recent Berkshire Hathaway investment will be revealed soon. "It all works together" said Cappelleri. "Whatever the investment is, there will be relief they're putting that few hundred billion dollars to work and investors will react positively." According to six analysts polled by FactSet, four have the stock rated as a hold and two a buy. The average price target is $787,396 which is 10% higher than where the stock traded Wednesday. Berkshire Hathaway now makes up more than 11% of the XLF, JPMorgan Chase is a close second. Over the last year, Cappelleri has seen a pattern showing an inverse relationship. When one stock ticks up, the other ticks down showing a pattern of investors favoring one or the other. BRK.A JPM 1Y mountain JP Morgan vs. Berkshire Hathaway. "One of the best times to buy this stock is when it pulls back to support levels, that's happened numerous times since 2020 and we think it's happening again now," said Cappelleri.
Bloomberg
2 minutes ago
- Bloomberg
Why the End of US Dollar Dominance Is Now Possible
Subscribe to Trumponomics on Apple Podcasts Subscribe to Trumponomics on Spotify On this episode of Trumponomics, we explore the impact of President Donald Trump's economic policies on the standing of the US dollar, and the consequences for the US and global economies if the greenback is no longer the world's primary reserve currency. As our guests explain, it seems that a reckoning has been in the making for some time. Right now, roughly nine out of 10 foreign exchange transactions are conducted in dollars and almost half of all merchandise trade. The greenback also makes up almost 60% of the reserves held by governments around the world. That unrivaled position has brought some big advantages to US policymakers and consumers over the years. But as Trump likes to point out, it's also made US exports a bit less competitive.
Bloomberg
2 minutes ago
- Bloomberg
Freeport Outage Brings Relief in Tight Market for Copper Ore
By , Alfred Cang, and Jack Ryan Save Freeport-McMoRan Inc. is selling unexpectedly large volumes of copper ore following an outage at a plant it owns in Indonesia, bringing short-term relief to smelters who've faced a historic squeeze on supply. The move by the US miner follows an incident affecting the oxygen plant at its PT Smelting facility, according to people with direct knowledge of the matter. That's led to an extension of an ongoing four-week maintenance shutdown at the plant, which is fed by Freeport's flagship Grasberg copper-gold mine.
