Washington - White House officials stated on Monday that U.S. President Donald Trump has extended the tariff truce with China for another 90 days, thus avoiding the imposition of triple-digit tariffs on Chinese goods, just as American retailers prepare for the crucial holiday shopping season at the end of the year.
When asked at a press conference whether he intended to maintain the lower tariff rates, Trump gave an ambiguous answer and shortly thereafter signed an executive order delaying the effective date of higher tariffs until mid-November. On Sunday, Trump requested that China increase its purchases of American soybeans fourfold, but it remains unclear whether Beijing has agreed to this.
The U.S.-China tariff truce, originally set to expire at 00:01 Eastern Time on Tuesday (04:01 GMT), has now been extended to early November. This extension has bought valuable time for the peak fall import season, allowing Christmas season goods, including electronics, clothing, and toys, to enter the U.S. at lower tariff rates.
The new executive order prevents U.S. tariffs on Chinese goods from soaring to 145%, while Chinese tariffs on American goods were also planned to increase to 125%—both levels nearly equivalent to a trade embargo between the U.S. and China. The order at least temporarily locks in Chinese tariffs on U.S. goods at 30%, while Chinese tariffs on American products remain at 10%.
