Trump Extends Pause On Chinese Imports For Another 90 Days Amid Ongoing Negotiations

Washington: US President Donald Trump has extended a pause on increased tariffs for Chinese imports by another 90 days, just hours before the initial 90-day moratorium was set to expire. Trump's decision, confirmed by a White House official, prolonged the tariff truce initially set to expire on August 12, hinting at ongoing negotiations between Beijing and Washington to resolve trade tensions.

Donald Trump on Monday signed an executive order extending a pause on sharply higher US tariffs on Chinese imports. The move is expected to provide temporary relief to businesses and markets.

Trump Had Imposed 145% Tariff On Chinese Goods

The US and China had agreed to a 90-day suspension of punitive trade tariffs in a bid to ease escalating tensions between the world's two largest economies. Under the agreement, US import tariffs on Chinese goods were reduced from a peak of 145% to 30%. In exchange, China cut its retaliatory duties on American exports from 125% to 10%.

The 90-day pause on tariffs was first introduced in May, amidst escalating trade tensions between the US and China. The Trump administration had imposed a 145% tariff on Chinese goods, but later agreed to a temporary pause to allow for further negotiations. The extension of this pause suggested that both sides are working towards a trade agreement.

Meanwhile, the decision to extend the tariff truce is seen as a positive development for businesses and markets, which had been bracing for a tariff hike. The uncertainty surrounding the tariff deadline had left companies in limbo, and the extension provided a welcome respite. However, the underlying tensions between the US and China remained, with the US seeking to offset its huge trade deficit with China.

The US trade deficit with China has been a point of contention, with Trump administration officials arguing that China's trade practices are unfair. The recent trade talks in Stockholm have provided some optimism, with both sides indicating an extension of the tariff pause. Treasury Secretary Scott Bessent had hinted at a possible 90-day delay to allow time for working out the details of an agreement setting tariffs on most products at 50%.

As the US and China continue their trade negotiations, the next 90 days will be crucial to determine the outcome. The extension of the tariff truce provides a window of opportunity for both sides to work towards a trade agreement. However, with Trump's unpredictable nature, the outcome remains uncertain.

Meanwhile, AI chip deals remain a contentious issue. US eases export curbs, yet tensions linger. Nvidia and AMD pay 15% royalties for licenses. 

Donald Trump hinted at allowing Nvidia to sell modified top-tier chips to China, while China's regulators grill Nvidia over H20 chip security concerns.