Discussion about China's trade deadline ongoing following favorable discussions between Washington and Beijing, according to the U.S. Trade Representative.
U.S. and China Agree to Extend Tariff Pause in Ongoing Trade Talks
The United States and China have reached an agreement to work on extending the current tariff pause, potentially for 90 days, beyond the August 12, 2025 deadline. This decision was made during trade talks held in Stockholm, as both countries aim to maintain a stable, healthy, and sustainable economic relationship.
The discussions, described as "in-depth, candid, and constructive," were attended by China’s lead negotiator and U.S. Treasury Secretary Scott Bessent. While specific commitments made during the talks remain undisclosed, agreements were indeed reached. However, the U.S. side emphasized that the extension requires President Donald Trump's final approval.
The tariff pause, which currently reduces tariffs to approximately 30% for Chinese goods entering the U.S. and 10% for U.S. exports to China, was initially set to expire in August 2025. The latest updates show that the implementation of new tariffs has been delayed until August 12, 2025, and the administration is actively negotiating with China and other trading partners to modulate tariff rates and trade terms.
The ongoing negotiations are aimed at avoiding immediate tariff escalations and addressing broader trade and strategic concerns between the two economic powerhouses. These concerns include U.S. worries over China's purchase of Iranian oil, dual-use technology supplies to Russia, and strategic industries such as rare earths, semiconductors, and medicines.
U.S. Trade Representative, Jamieson Greer, stated that the deadline for a trade deal may slide due to "very positive" conversations with their counterparts from Beijing. The negotiations are progressing, with the U.S. being about halfway there, according to Greer.
The U.S. is also focusing on increasing the flow of rare earth magnets and minerals away from China and its supply chain. This move is part of a broader strategy to reduce dependence on China for critical resources.
It's important to note that tariffs on China, America's largest trading partner, could snap back up to above 80% if a deal is not reached. This underscores the urgency and importance of these ongoing negotiations.
Fox Business' Morgan Phillips and Edward Lawrence contributed to this report.
- The extension of the tariff pause in the ongoing trade talks between the United States and China potentially impacts the revenue generated from U.S. business with China, as the tariffs on Chinese goods entering the U.S. could snap back up to above 80% if a deal is not reached.
- These trade talks, which include discussions on policy-and-legislation, strategic industries such as rare earths, semiconductors, and medicines, and U.S. concerns over China's purchase of Iranian oil and dual-use technology supplies to Russia, also influence the financial markets, as they impact the general news and politics.
- The tariff rates and trade terms are being negotiated by both countries to ensure a stable, healthy, and sustainable economic relationship, an aspect that is crucial for the trading and finance sector.
- During the trade talks held in Stockholm, both the U.S. and China made agreements, but the final approval for the extension of the tariff pause necessitates President Donald Trump's approval, highlighting the political component of these negotiations.
