Link Securities | US President Donald Trump signed an executive order to extend the trade tariff truce with China for another 90 days, as confirmed by Trump himself and the Chinese Ministry of Commerce. With the latest round of negotiations set to expire early Tuesday morning, this pushes the deadline to mid-November, providing crucial relief for seasonal import increases ahead of Christmas. The US will maintain 30% tariffs on Chinese imports, while China will leave reciprocal tariffs at 10%, avoiding rates of 145% and 125%, respectively.
This postponement was expected after the round of negotiations between the two countries in Stockholm. However, it comes after Trump’s request that China quadruple its purchases of US soybeans. There is still no clear path to a comprehensive trade agreement, with the US describing the negotiations as difficult. There are several contentious issues, such as fentanyl and rare earths. Nevertheless, the measure taken could pave the way for a Trump visit to China that includes a meeting with Chinese President Xi Jinping in late October, close to an international meeting in South Korea.
