Hey News Fam! 📣 Big update in global trade: the US and the Chinese mainland have agreed to extend their 24% reciprocal tariff suspension for another 90 days. This marks the third pause since May 2025, giving both sides more time to negotiate and avoid a full-blown trade clash. 🤝⏳
Here’s the scoop:
- Stockholm Talks: In late July, negotiators reaffirmed their commitment to keeping tariffs on hold after discussions in Stockholm. They’re playing the long game to bridge gaps.
- Domestic Pressures: The US administration relies heavily on tariffs as leverage, and big cuts are tough to push through Congress. All eyes are now on a possible 20% cut tied to the fentanyl issue—but that’s a major ask.
- Next Steps: If no deal emerges by mid-November, expect another 90-day extension. Sector-specific moves—like exemptions or targeted tariffs—could shake things up.
Why it matters 💡: Ongoing tariff stability helps businesses plan ahead and keeps prices from spiking too fast. But with inflation brewing in the US, a high-pressure holiday season could force leaders to rethink their strategies.
Don’t overlook diplomacy 🌐: A phone call on June 5 between US President Donald Trump and Chinese mainland President Xi Jinping included another invitation to visit the Chinese mainland. A face-to-face could be a game-changer!
Bottom line: The US–Chinese mainland trade relationship remains a delicate dance of negotiation and mutual dependence. For now, this extension is a fragile truce that both sides hope will lead to a lasting deal. Stay tuned! 🚀
Reference(s):
China, U.S. extend tariff hike suspension: Stability amid uncertainty
cgtn.com
