Donald Trump extends China's 125pc tariff deadline for another 90 days

Australia Broadcast Center

2 days ago

Donald Trump has signed an executive order extending a pause in sharply higher US tariffs on Chinese imports for another 90 days, a White House official said.
A tariff truce between Beijing and Washington had been set to expire on August 12 at midnight Beijing time (3:01pm AEST), but the Trump administration had hinted the deadline could be extended.
The US and China agreed to a 90-day pause on triple-digit tariffs in May, after the trade war sent world markets tumbling.
If it is not extended, US tariffs on Chinese goods will shoot up to 145 per cent, with Chinese tariffs on US imports set to hit 125 per cent.
On Monday, the US president said Washington had been "dealing very nicely with China".
"We'll see what happens. They've been dealing quite nicely. The relationship is very good with President Xi [Jinping] and myself," Mr Trump told reporters.
Earlier in the day, Beijing said it was looking to Washington for "positive" trade outcomes.
"We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state," said Chinese foreign ministry spokesperson Lin Jian in a statement.
He added that Beijing also hoped Washington would "strive for positive outcomes on the basis of equality, respect and mutual benefit".
Although both sides reached a pact to de-escalate tensions after high-level talks in Geneva in May, their truce has been shaky.
In June, key economic officials convened in London as disagreements emerged and US officials accused their counterparts of violating the pact. Policymakers again met in Stockholm last month.
Even as both countries appeared to be seeking to push back the reinstatement of duties, US trade envoy Jamieson Greer said last month that Mr Trump would have the "final call" on any such extension.
Last week, US Commerce Secretary Howard Lutnick said in an interview that it is likely Mr Trump would further the pause by another 90 days.
Mr Trump said in a social media post late on Sunday that he hoped China would "quickly quadruple its soybean orders", adding that this would be a way to balance trade with the United States.
For now, fresh US tariffs on Chinese goods this year stand at 30 per cent, while Beijing's corresponding levy on US products is at 10 per cent.
Since returning to the presidency in January, Mr Trump has slapped a 10 per cent "reciprocal" tariff on almost all trading partners, aimed at addressing trade practices Washington deemed unfair.
This surged to varying, steeper levels last Thursday for dozens of economies.
Major partners like the European Union, Japan and South Korea now see a 15 per cent US duty on their products, while the level went as high as 41 per cent for Syria.
The "reciprocal" tariffs exclude sectors that have been separately targeted, such as steel and aluminium, and those that are being investigated like pharmaceuticals and semiconductors.
Mr Trump has also taken separate aim at individual countries such as Brazil over the trial of former president Jair Bolsonaro, who is accused of planning a coup, and India over its purchase of Russian oil.
AFP/ABC