The US and China have agreed to extend their trade truce for another 90 days, just hours before tariffs on imports of each other’s goods were set to increase. The extension will keep the current tariff rates in place until November 10.
Under the agreement, the US will maintain its 30% levy on Chinese imports, while China will continue to impose a 10% tariff on American goods. This is the latest development in a long-standing trade dispute between the two countries, which began in January.
The White House said the extension would give more time for further negotiations about “remedying trade imbalances” and “unfair trade practices”. The talks aim to address issues such as China’s large trade deficit with the US, estimated at nearly $300 billion in 2024.
China has also called on the US to lift its “unreasonable” trade restrictions, which it claims are hurting businesses on both sides. Beijing says that suppression and containment will lead nowhere and instead advocates for win-win cooperation between the two nations.
The latest extension comes after a round of trade talks held in Geneva in May, where the countries agreed to scale back tariffs on each other’s goods. However, tensions remain high, with some US businesses expressing concern about the uncertainty surrounding the ongoing trade negotiations.
Despite the pause, trade flows between the US and China have been affected this year, with imports from China cut nearly in half compared to June 2022. American exports to China also fell roughly 20% year-on-year for the same period.
Source: https://www.bbc.com/news/articles/cg7jjkvzmkxo