US-China tariff truce extended by 90 days
China’s Ministry of Commerce has also announced a simultaneous suspension of additional tariffs. Therefore, the truce, which was due to end on the 12th of July, will now remain in effect until the 10th of November, paving the way for negotiations to continue.
“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”, reads Trump’s executive order, which uses the acronym for the People’s Republic of China.
The new order prevents US tariffs on Chinese goods from rising to 145%, while Chinese tariffs on US goods were set to reach 125% - rates this high would have amounted to a de facto trade embargo between the two countries. For now, at least, it secures a 30% tariff on Chinese imports and 10% duties on US imports.
Source: reuters.com
Image Credits: macaonews.org