US, China extend tariff truce by 90 days, staving off surge in duties
US President Donald Trump announced on his Truth Social platform on Monday that he had signed an executive order suspending the imposition of higher tariffs until 12:01 am EST (0501 GMT) on November 10, with all other elements of the truce to remain in place.
China's Commerce Ministry issued a parallel pause on extra tariffs early on Tuesday, also postponing for 90 days the addition of US firms it had targeted in April to trade and investment restriction lists.
"The United States continues to have discussions with the PRC to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns," Trump's executive order stated, using the acronym for China.
The tariff truce between Beijing and Washington had been due to expire on Tuesday at 12:01 am EDT (0401 GMT). The extension until early November buys crucial time for the seasonal autumn surge of imports for the Christmas season, including electronics, apparel and toys at lower tariff rates.
The new order prevents US tariffs on Chinese goods from shooting up to 145 per cent%, while Chinese tariffs on US goods were set to hit 125 per cent - rates that would have resulted in a virtual trade embargo between the two countries. It locks in place - at least for now - a 30 per cent tariff on Chinese imports, with Chinese duties on US imports at 10 per cent.
There was relief on the streets of China's capital, where officials are grappling with the challenge Trump's trade policy poses to the economy's long-standing, export-oriented growth model.
Markets showed optimism for a breakthrough between the two superpowers, with Asian stocks rising and currencies mostly steady, after treading water for weeks.
Trump told CNBC last week that the US and China were getting very close to a trade agreement and he would meet Xi before the end of the year if a deal was struck.
TRADE 'DETENTE' CONTINUED
The two sides announced a truce in their trade dispute in May after talks in Geneva, Switzerland, agreeing to a 90-day period to allow further talks. They met again in Stockholm, Sweden, in late July, and US negotiators returned to Washington with a recommendation that Trump extend the deadline.
Treasury Secretary Scott Bessent has said repeatedly that the triple-digit import duties both sides slapped on each other's goods in the spring were untenable and had essentially imposed a trade embargo between the world's two largest economies.
"It wouldn't be a Trump-style negotiation if it didn't go right down to the wire," said Kelly Ann Shaw, a senior White House trade official during Trump's first term and now with law firm Akin Gump Strauss Hauer & Feld.
She said Trump had likely pressed China for further concessions before agreeing to the extension.
Trump pushed for additional concessions on Sunday, urging China to quadruple its soybean purchases, although analysts questioned the feasibility of any such deal. Trump did not repeat the demand on Monday.
China's exports to the US fell an annual 21.7 per cent last month, according to the country's latest trade data, while shipments to Southeast Asia rose 16.6 per cent over the same period as manufacturers sought to pivot to new markets and capitalise on a separate reprieve that allowed trans-shipment to the US.
Separate US data released last week showed the trade deficit with China shrank to its lowest in more than 21 years in June.
Still, analysts expect the world's two largest economies to reach an agreement before long, as their deep interdependence makes pursuing alternative markets unattractive over the long term.
Washington has also been pressing Beijing to stop buying Russian oil to pressure Moscow over its war in Ukraine, with Trump threatening to impose secondary tariffs on China.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
9 minutes ago
- The National
‘I felt useless and needed to do something': UK MP on letter to triggering Palestine recognition move
A call from a friend in Gaza to an influential Labour MP was instrumental in Britain's historic move towards recognising the Palestinian state, she has told The National. Just days before the UK government announced its first steps in recognising the state, Sarah Champion received a phone call from a friend who told the politician that after months of struggling to find food in Gaza 'my family are just waiting to die', and everyone they knew felt the same. 'To lose hope is a horrific thing, I felt useless and knew I needed to do something to try and restore it,' Ms Champion told The National. The next steps she took were to have a decisive impact on Britain recognising Palestine as a sovereign nation and influencing President Donald Trump's view that starvation was genuine in Gaza. Had to act quickly The call taken by Ms Champion, chairwoman of Parliament's international development committee, was on Wednesday, July 23. The situation in Gaza was visibly deteriorating, with pictures of starving children shared on social media. There was a growing consensus to rein in Israel's actions, she felt, including its plans to further annex occupied West Bank territories. With parliament heading into summer recess Ms Champion had to act quickly if she was to maximise pressure on the government. She knew that very senior cabinet members − including the Foreign Secretary David Lammy − were dismayed by Israel's dismissal of their concerns and had been quietly lobbying Prime Minister Keir Starmer for Palestine recognition. If she could garner enough cross-bench parliamentary support then that could provide the impetus for a major political step. Message blitz Ms Champion and her team went to work sending WhatsApp messages and emails to fellow MPs to sign a letter that called on Mr Starmer to recognise Palestine. 'I was amazed how many we got, and in such a short space of time – just 30 hours – but I think it is a clear representation of the strength of feeling in Parliament in support of the Palestinian plight,' she said. The following night, France suddenly announced it would recognise Palestine, and by 5pm on the Friday she had amassed a record number of 221 signatures from MPs representing nine different parties. 'UK recognition would have a significant impact due to our historic connections and our membership on the UN Security Council, so we urge you to take this step,' the MPs said. Key to the gathering of signatures was the respect held by fellow MPs from all parties for Ms Champion, who has been consistently outspoken on the plight of Palestinians. With this in mind, Mr Starmer knew he had to respond quickly and while he did not immediately agree, he did use new language condemning Israel's 'disproportionate military escalation in Gaza' that was 'indefensible'. 'Set the agenda' However, with US President Donald Trump landing in Scotland just a few hours later, now was not the time to initiate a political earthquake. But having the American leader in Britain was useful as he would be meeting Mr Starmer on the Monday, by which time after continued weekend reports of the grim situation in Gaza, 255 MPs had now signed the letter. The letter, according to Ms Champion, had 'set the agenda for journalists when Trump came to the UK', and this made the President more aware of the dire situation. In the press conference with Mr Starmer, Mr Trump stated 'that's real starvation stuff, I see it, and you can't fake that,' adding 'we have to get the kids fed'. The letter had been 'a significant factor in his comments around believing starvation was occurring in Gaza', claims Ms Champion. Indication of urgency More important was the letter's impact on the British government's decision on July 29, just after Mr Trump left Scotland, to set out its steps towards recognition. 'The letter gave them an indication of the urgency, and I am glad they listened,' Ms Champion said. While Britain's move was met with fury from Israel, she argued that it sent a 'clear signal' that the UK believed 'Palestine is a viable state and needs to be treated as such; with all the protections and rights afforded to other nations'. 'To have a two-state solution, you have to have two states,' she added. 'And the Israeli cabinet needs to understand the status quo is neither acceptable nor going to continue.' Israel also needed to secure a ceasefire and work for a lasting peace that 'enables both countries to feel safe and respected', added the MP for Rotherham, in northern England. Britain, unless Israel meets certain conditions will now be joined by France, Canada, Australia and Malta at the UN General Assembly next month in recognising Palestine, taking the total of countries that do so to 152.
Zawya
39 minutes ago
- Zawya
Trump cites 'major lawsuit' against Fed's Powell, again urges rate cut
U.S. President Donald Trump on Tuesday reiterated his call for the U.S. Federal Reserve to lower benchmark rates, and cited "a major lawsuit" against Fed Chair Jerome Powell over renovations of the central bank's buildings. "Jerome 'Too Late' Powell must NOW lower the rate," Trump wrote on his social media platform. "I am, though, considering allowing a major lawsuit against Powell to proceed because of the horrible, and grossly incompetent, job he has done in managing the construction of the Fed Buildings." (Reporting by Ryan Patrick Jones; writing by Susan Heavey; Editing by Chizu Nomiyama )
Gulf Today
44 minutes ago
- Gulf Today
Trump deploys National Guard in Washington to reduce crime
President Donald Trump said on Monday that he's deploying the National Guard across Washington and taking over the city's police department in the hopes of reducing crime, even as the city's mayor has noted that crime is falling in the nation's capital. The Republican president, who said he was formally declaring a public safety emergency, compared crime in the American capital with that in other major cities, saying Washington performs poorly on safety relative to the capitals of Iraq, Brazil and Colombia, among others. Trump also said at his news briefing that his administration has started removing homeless encampments 'from all over our parks, our beautiful, beautiful parks.' 'We're getting rid of the slums, too,' Trump said, adding that the US would not lose its cities and that Washington was just a start. US Attorney General Pam Bondi will be taking over responsibility for Washington's metro police department, he said, while also complaining about potholes and graffiti in the city and calling them 'embarrassing.' For Trump, the effort to take over public safety in Washington reflects a next step in his law enforcement agenda after his aggressive push to stop illegal border crossings. But the move involves at least 500 federal law enforcement officials as well as the National Guard, raising fundamental questions about how an increasingly emboldened federal government will interact with its state and local counterparts. The president has used his social media and White House megaphones to message that his administration is tough on crime, yet his ability to shape policy might be limited outside of Washington, which has a unique status as a congressionally established federal district. Nor is it clear how his push would address the root causes of homelessness and crime. Trump said he is invoking Section 740 of the District of Columbia Home Rule Act to deploy members of the National Guard. About 500 federal law enforcement officers are being tasked with deploying throughout the nation's capital as part of the Trump administration's effort to combat crime, a person familiar with the matter told reporters on Monday. More than 100 FBI agents and about 40 agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives are among federal law enforcement personnel being assigned to patrols in Washington, the person briefed on the plans said. The Drug Enforcement Administration, Immigration and Customs Enforcement and the Marshals Service are also contributing officers. The person was not authorised to publicly discuss personnel matters and spoke to the AP on the condition of anonymity. The Justice Department didn't immediately have a comment Monday morning. Mayor Muriel Bowser, a Democrat, questioned the effectiveness of using the Guard to enforce city laws and said the federal government could be far more helpful by funding more prosecutors or filling the 15 vacancies on the DC Superior Court, some of which have been open for years. Bowser cannot activate the National Guard herself, but she can submit a request to the Pentagon. 'I just think that's not the most efficient use of our Guard,' she said Sunday on MSNBC's 'The Weekend,' acknowledging it is 'the president's call about how to deploy the Guard.' Bowser was making her first public comments since Trump started posting about crime in Washington last week. She noted that violent crime in Washington has decreased since a rise in 2023. Trump's weekend posts depicted the district as 'one of the most dangerous cities anywhere in the World.' For Bowser, 'Any comparison to a war-torn country is hyperbolic and false.' Trump in a Sunday social media post had emphasised the removal of Washington's homeless population, though it was unclear where the thousands of people would go. 'The Homeless have to move out, IMMEDIATELY,' Trump wrote on Sunday. 'We will give you places to stay, but FAR from the Capital. The Criminals, you don't have to move out. We're going to put you in jail where you belong.' Associated Press
