China suspends tariff on US goods for 90 days after Trump extended Beijing’s tariff deadline

The earlier deadline for the Chinese imports was August 12, 12:01am (local time). If the deadline was not extended, the United States could have increased the import duties on Chinese goods from an already high of 30%, and Beijing would have responded in a retaliatory measure towards US exports to China.

In May, Washington and Beijing agreed to mutually bring down the tariff levies which had skyrocketed to 145% against Chinese goods and 125% against US goods. The agreement between two of the biggest economies virtually averted an economic catastrophe.

The imposition of higher tariffs has now been suspended by both the US and China until 12:01am EST on November 10. The 90-days extension would give room for negotiation for the two countries on their differences, and could also pave the way for a summit later this year between Trump and Chinese President Xi Jinping.

“The United States continues to have discussions with the PRC to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns,” Trump’s executive order stated, reported Reuters.

As of now, the levies on Chinese imports remains at 30% with Chinese duties on US imports at 10%. Earlier on Monday, Trump had said “We’ll see what happens,” when asked by reporters regarding the Chinese tariff deadline.