The tariffs on Chinese goods were set to increase from 12 August, but US President Donald Trump’s executive order has deferred the hike, with China reciprocating the gesture.
Trump announced the extension on his Truth Social platform, stating: “I have just signed an executive order that will extend the tariff suspension on China for another 90 days. All other elements of the agreement will remain the same.”
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Consequently, the US will maintain a 30% tariff on Chinese imports, while China will continue imposing a 10% tariff on American goods.
Earlier this year, tensions escalated as the US considered imposing tariffs as high as 145% on Chinese goods, with Beijing proposing retaliatory duties of 125% on US products.
However, these rates were moderated following trade talks in Geneva in May.
Subsequent discussions in Stockholm in late July led US negotiators to recommend that Trump extend the truce deadline, according to Reuters.
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By GlobalData“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,” Trump’s executive order stated.
This extension is particularly pertinent for the fashion sector, which faces uncertainty due to both the pending US-China tariff negotiations and legal challenges against Trump’s reciprocal tariffs.
The tariff, now totalling 50%, places India under one of the highest tax brackets in the US.
It is scheduled to take effect on 27 August, leaving a narrow window for India and the US to engage in discussions that could potentially lead to a revised tariff agreement.
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