Key Takeaways
- The U.S. has extended a trade war truce with China, according to reports.
- Because of the truce, tariffs on Chinese products will stay at 54% instead of rising to 145%.
- The U.S. had been in a tit-for-tat trade war with China this year until May, when the two sides agreed to pause mutual retaliation while they negotiate.
The U.S. extended its trade truce with China hours before the U.S. was set to raise import taxes on China to an extreme level.
President Donald Trump extended the trade war pause Monday for another 90 days, CNBC reported, citing White House officials. Earlier in the year, the two countries had waged an escalating economic war on one another, raising tariffs and restricting exports crucial to one another’s industries.
Since May, the two sides have scaled back their mutual tariffs (though still held them at elevated levels) and lifted restrictions on materials such as rare earth minerals from China and U.S.-made computer chips.
Had Trump not extended the pause, tariffs on most products from China would have risen to 145% starting Tuesday.