The United States and China have extended their tariff truce deadline for another 90 days, averting the threat of triple-digit duties on each country’s goods.
The previous deadline between the world’s two biggest economies was set to expire on 12 August. However, just hours before the deadline expired, US President Donald Trump signed an executive order suspending higher tariffs on China until 10 November.
“The action is necessary to facilitate ongoing and productive discussion with China about remedying trade imbalances, unfair trade practices, expanding market access for American exports and aligning the United States on national security and economic matters,” Trump said in a White House statement.
At the same time, China’s Ministry of Commerce also announced that it would suspend additional tariffs on the US and continue to pause adding more US companies to its restriction list.
The announcement comes after the latest round of trade talks between the US and China, held in Stockholm at the end of July.
Trump’s trade war against long-term allies began shortly after he took office in January. The president first targeted China and close trade partners Canada and Mexico. In April, he announced sweeping “Liberation Day” tariffs against most countries as part of his “America First” policy that aims to boost US manufacturing.
However, the move triggered a tit-for-tat stand-off between the US and China, which saw Trump raise tariffs on Chinese goods to as high as 145% and China retaliate with a 125% levy.
Trump’s revised “Liberation Day” tariffs finally came into effect on 7 August, after months of multiple reversals and global market chaos. More than 90 countries now face higher tariffs ranging between 10% and 50%.
Under the latest US-China agreement, imports from China to the US will carry a 30% tariff, while goods from the US to China are subject to a 10% duty.
Meanwhile, talks between Canada and Mexico were held on 5 August to strengthen bilateral ties, Reuters reported. The two-day visit by Canadian officials to Mexico, where they met Mexican President Claudia Sheinbaum, came as Trump raised the tariff on Canada to 35% and paused Mexico’s levy at 25% for 90 days.
“These discussions with the president and members of her government advanced key shared priorities in terms of economic growth, security and trade diversification,” Canadian Foreign Minister Anita Anand was quoted by Reuters as saying.
