The US has announced an extension of the 90-day tariff truce with China until November 10, maintaining existing surcharges on imports. This decision avoids an automatic increase in tariffs and provides additional time for ongoing negotiations.
Overview of Tariff Truce Extension
On August 11, the US President signed a decree extending the 90-day trade truce with China. As a result, the end of the tariff increase suspension is postponed until November 10. The current surcharges are 30% on Chinese imports and 10% on American exports. This measure extends the agreement reached in May in Geneva aimed at reducing tensions. China confirmed through the Xinhua agency that it is applying the same extension, aligning its position with Washington.
Status of Negotiations and Market Consequences
Since May, several rounds of talks have taken place in Geneva, London, and Stockholm. Washington states that China has taken significant measures to address American economic and national security concerns. Negotiations are ongoing with the aim of finding common ground before the new deadline. The US President noted the constructive nature of the negotiations and emphasized the need for concrete concessions, including an increase in Chinese purchases of agricultural products, particularly soybeans. China, on its side, expresses its desire for a positive outcome based on equality and mutual benefit.
Positions of the Parties and Trade Stability
This extension provides visibility to importers and exporters, allowing them to plan trade flows at current rates until November 10 to reduce short-term uncertainty. The exemption of gold from new duties, confirmed by Washington, has alleviated market concerns and contributed to price stabilization. However, other surcharges imposed in recent months, notably on steel, aluminum, and some industrial goods, remain in effect. New taxes could be applied if no agreement is found before the deadline. Companies must therefore anticipate several scenarios and adapt their supply strategies.
The extension of the tariff truce between the US and China reflects both parties' commitment to finding compromises amid market uncertainty. Maintaining current tariffs will help avoid additional pressure on both economies in the short term.
