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US President Donald Trump has once again appeared hesitant about imposing tariffs on neighbouring country China. He has again extended the deadline for tariffs on China by 90 days, i.e. till November.
This has stabilized the trade relationship between the world’s two largest economies for the time being. According to a person familiar with the matter, President Trump signed an order related to this on Monday. The old agreement, under which the US and China agreed to reduce tariff increases on each other and ease export restrictions on some other technologies including rare earth magnets, was expiring on Tuesday.
Negotiators from both sides had reached a preliminary agreement to continue this agreement in Sweden last month. Then President Trump’s advisors had hoped that he would approve it. However, Trump has made many changes at the last minute. Their details could not be found yet. If the deadline for implementing the tariff was not extended, then after midnight in New York, US tariffs on Chinese goods would have increased to at least 54%.
Toughness reduced since Geneva talks
Earlier in April, when Trump imposed tariffs on countries around the world, both Washington and Beijing were embroiled in a tariff war. Both countries had imposed heavy tariffs on each other’s exports, which had reached three-digit levels. However, after talks in Geneva, both countries agreed to temporarily reduce tariffs. After this, officials of both countries also met in London in June.
Pass clear for meeting between Trump and Xi Jinping
This time extension will reduce the concern of trade war between the US and China for the time being. Global markets were shaken due to the escalation of tensions between the two countries earlier this year. Trump’s new order will now give both countries more time to discuss other unresolved issues. Apart from this, this move has also cleared the way for President Trump to visit China to meet Xi Jinping at the end of October.
