Trump's Tariff Truce: Extending the Trade War Pause
U.S. President Donald Trump extended the tariff truce with China by 90 days, preventing imminent higher duties on imports and allowing more time for negotiation. This move aims to facilitate critical year-end imports and maintain positive relations with Chinese President Xi Jinping amidst ongoing bilateral trade discussions.
In a significant development in U.S.-China trade relations, President Donald Trump has announced an extension of the existing tariff truce with China by an additional 90 days. This extension plays a crucial role in averting an escalation of import duties that were set to increase drastically, particularly affecting the U.S. retailers gearing up for the holiday season.
This executive decision delays the imposition of higher tariffs, allowing for continued negotiations between the world's two largest economies. Analysts have viewed this move as a strategic attempt to buy time for the necessary imports peak as the Christmas season approaches, which would otherwise be impacted severely by the proposed tariffs reaching up to 145% on Chinese goods.
During a recent press conference, President Trump highlighted his positive rapport with Chinese President Xi Jinping, and experts like Wendy Cutler from the Asia Society Policy Institute interpret this extension as indicative of both nations' willingness to reach a mutually agreeable trade deal potentially leading to a Xi-Trump meeting before year-end.
(With inputs from agencies.)
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