US tariffs on China: Trump extends tariff break until November!

US tariffs on China: Trump extends tariff break until November!

US President Trump has suspended increased tariffs on Chinese imports for another 90 days, a move intended to prevent an escalation in trade disputes between the two nations. The tariffs, originally scheduled to expire on August 12, will now apply until 12:01 a.m. Washington time on November 10. This tariff pause overrides a previously increased tariff of up to 145 percent on Chinese goods, while China responded with 125 percent. The US government currently charges a 30 percent surcharge on Chinese imports, while China only charges 10 percent. Trump justifies these measures with the feeling that he is being disadvantaged by other countries in trade and is therefore pursuing the goal of relocating production back to the USA.

China, on the other hand, sees the high tariffs as unfair and politically motivated. In ongoing trade talks, China aims to negotiate access to advanced AI chips from the US. The US government also accuses China of withholding certain raw materials, especially rare earths. In this context, previous negotiations in Geneva have resulted in a temporary reduction in tariffs and representatives from both countries have indicated that progress has been made.

Progress in negotiations

After two days of negotiations in London, Trump announced an agreement with China. This refers to both export restrictions on rare earths and customs duties. China has agreed to supply certain raw materials such as rare earths to the USA. In return, Chinese students are given the opportunity to study in the USA. The agreements also include an increase in tariffs to 55 percent on Chinese goods, an increase from the 30 percent set in Geneva.

Senior officials from both countries took part in the talks, with Vice Prime Minister He Lifeng calling to reduce misunderstandings and strengthen cooperation. The Chinese side spoke of “progress” and a constructive exchange. Chancellor Friedrich Merz welcomed the trade agreement and emphasized that it would not be at the expense of Europe.

Impact on the global economy

The trade conflict between the USA and China is already having a negative impact on the global economy. Many countries' dependence on China's rare earths could jeopardize global supply chains. The measures already taken and the ongoing discussions show how serious the situation is and that both countries are trying to find an agreement. Appeal judges in the USA are also examining the legality of the tariffs; a decision is still pending. Another meeting between leaders Trump and Xi Jinping could take place in the near future to advance ongoing negotiations.

In summary, the extended tariff pause and ongoing talks between the US and China are critical to reducing trade tensions and promoting a more stable economic relationship between the world's two largest economies. However, the challenges remain significant and continue to require careful negotiations.

For further information about the current developments in the trade dispute, see the articles at South Germans and daily news be consulted.