China and US Agree to Delay Higher Tariffs for 90 Days

TDT | Manama

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China and the United States have agreed to delay raising tariffs on each other’s imports for another 90 days, just hours before a trade truce between the two economic giants was set to expire on Tuesday.

US President Donald Trump signed an executive order on Monday to extend the current tariff pause until November 10. The White House confirmed the delay on its website, saying the move will help continue trade talks with China.

China also announced it will keep suspending its planned tariff increases for the same 90-day period starting August 12, while maintaining a 10 percent duty on some goods, according to a joint statement from both countries.

Earlier this year, the US and China had imposed higher tariffs on each other’s products, causing trade tensions and increasing costs for businesses. But in May, both sides agreed to temporarily lower tariffs to 30 percent from the US and 10 percent from China as part of a trade agreement.

Now, these tariff levels will remain in place until November, or until a new deal is reached before then.

The White House said in its executive order that the US continues to face "large and persistent trade deficits" with China, which it views as a threat to national security and the economy. However, it noted that China has made progress addressing US concerns.

China said it would also keep suspending other trade restrictions against the US, in line with their May agreement.

In Shanghai, residents reacted positively to the news. Zhang Xuan, a 25-year-old student, said, “I believe these negotiations will lead to better relations between the two countries.”

Lin Peng, a leasing agent, added that more talks are expected since President Trump, being a businessman, would not want a trade war that damages his own interests.