Reports from CNBC and Other Foreign Media Outlets
U.S. President Donald Trump has decided to extend the tariff truce with China for an additional 90 days.
According to foreign media outlets including CNBC, President Trump signed an executive order on the 11th (local time) to extend the 115-percentage-point tariff reduction on China for another 90 days.
In April, the United States and China imposed ultra-high tariffs of over 100% on each other's goods, escalating tensions to a standoff. However, during the first high-level trade talks held in Geneva, Switzerland in May, both sides agreed to reduce tariffs by 115 percentage points each. The United States agreed to temporarily apply a 30% tariff rate on Chinese goods for 90 days, while China imposed a 10% tariff rate on U.S. goods for the same period.
Subsequently, at the third round of high-level trade negotiations held in Stockholm, Sweden from the 28th to 29th of last month, the two sides reached a tentative agreement to extend the tariff truce for another 90 days. President Trump had postponed making a final decision, but completed the signing procedure on the day the truce was set to expire.
Prior to President Trump's signing of the executive order, China urged the United States to extend the tariff truce. Chinese Foreign Ministry spokesperson Lin Jian stated, "We hope the United States will implement the important agreements reached during the leaders' call and cooperate with China on the basis of equality, respect, and mutual benefit to achieve positive results."
With this extension of the tariff truce, the United States and China have avoided a return to the extremes of a trade war. Both sides are expected to continue negotiations on detailed issues, including China's manufacturing overcapacity, U.S. tariffs on fentanyl, and the opening of the Chinese market.
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