{"id":336712,"date":"2025-08-11T21:24:13","date_gmt":"2025-08-11T21:24:13","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/336712\/"},"modified":"2025-08-11T21:24:13","modified_gmt":"2025-08-11T21:24:13","slug":"us-and-china-agree-to-critical-extension-preventing-tariff-surge-on-the-worlds-two-largest-economies","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/336712\/","title":{"rendered":"US and China agree to critical extension, preventing tariff surge on the world\u2019s two largest economies"},"content":{"rendered":"

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\n The United States and China agreed to pause tariff hikes on each other\u2019s goods for an additional 90 days, a White House official told CNN. Without the agreement, tariffs were set to immediately surge, risking a return to ultra-high levels that had formed an effective blockade on trade between the world\u2019s two largest economies.\n <\/p>\n

\n The news, first reported by CNBC<\/a>, comes hours ahead of a 12:01 am ET deadline when tariffs on Chinese goods were set to rise to 64% from 30%. It\u2019s unclear what rates China would have charged on American goods, which are currently subject to minimum 10% tariffs.\n <\/p>\n

\n It also comes after President Donald Trump imposed a slew of \u201creciprocal\u201d tariffs on trading partners around the world, which have raised the United States\u2019 effective tariff rate to levels not seen since the Great Depression.\n <\/p>\n

\n Higher tariffs on Chinese goods, America\u2019s second-largest source of imports, would have almost certainly raised the costs many American businesses and consumers could pay \u2014 or already are paying \u2014 because of increased import taxes Trump has enacted.\n <\/p>\n

\n After meeting in Sweden last month, Chinese negotiators went as far as to say that a deal was reached. Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, both of whom attended the meeting, disputed that, saying nothing was final without Trump\u2019s word.\n <\/p>\n

\n \u201cWe\u2019ll see what happens. They\u2019ve been dealing quite nicely. The relationship is very good with President Xi and myself,\u201d Trump said earlier on Monday.\n <\/p>\n

\n At the conclusion of last month\u2019s meeting with Chinese trade officials, Bessent said he warned his Chinese counterparts that continuing to purchase Russian oil would bring about huge tariffs under legislation in Congress that allows Trump to impose levies up to 500%.\n <\/p>\n

\n It\u2019s not clear if the administration is prepared to double down on those threats yet. Trump recently threatened India, which also purchases Russian oil, albeit considerably less than China, with a 50% tariff rate<\/a> if it continues to do so by the end of this month.\n <\/p>\n

\n The move to penalize India and not other countries purchasing oil from Russia has been widely criticized by the Indian government, which claims it\u2019s being unfairly singled out. Trump suggested that more countries could face similar threats. \u201cYou\u2019re going to see a lot more. So this is a taste,\u201d he said last week.\n <\/p>\n

\n And over the weekend in a Fox News interview, Vice President JD Vance said such tariffs on China are on the table, though Trump had not yet made a decision.\n <\/p>\n

\n \u201cGiven that we seem to be headed toward some type of deal with China leading to some kind of meeting between Xi and Trump, the administration has definitely been more conciliatory towards China in the past few weeks,\u201d said Wendy Cutler, a former US trade negotiator who is now vice president of the Asia Society Policy Institute.\n <\/p>\n

\n Were China to give in to the administration\u2019s desires to stop purchasing Russian oil, it would be done \u201cquietly and gradually\u201d rather than a Trump announcement on social media, she added.\n <\/p>\n

Much remains unresolved<\/p>\n

\n Bessent also said he voiced concerns and regrets about China\u2019s sales of over $15 billion worth of dual-use technology equipment (that is, equipment that has both commercial and military uses) to Russia and its purchase of sanctioned Iranian oil.\n <\/p>\n

\n Another sticking point between the US and China has been exportations of rare earth magnets. China agreed to increase exports, but Trump says China has not held up its end of the bargain.\n <\/p>\n

\n The US also wants to find an American buyer for TikTok, which is currently owned by a Chinese company. Congress has set out a timeline for the app to find new ownership or face a US ban.\n <\/p>\n

\n US stocks closed lower Monday ahead of key inflation data set to be published Tuesday morning.\n <\/p>\n

\n This is a developing story. It will be updated.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Facebook Tweet Email Link The United States and China agreed to pause tariff hikes on each other\u2019s goods…\n","protected":false},"author":2,"featured_media":336713,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[49,978,659],"class_list":{"0":"post-336712","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-united-states","9":"tag-us","10":"tag-usa"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115012243559886610","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/336712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=336712"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/336712\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/336713"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=336712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=336712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=336712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}