Trump Delays Major Tariff Hike on Chinese Goods with Crucial 90 Day Extension

President Trump has announced a 90 day extension on the deadline for higher tariffs on Chinese imports, offering a pause in the escalating trade tensions that have unsettled global financial markets this year. Tariffs on Chinese goods were scheduled to soar to triple digit rates, a move many feared would disrupt international supply chains and increase costs for businesses and consumers alike.

The extension was confirmed by a White House official following an executive order signed by Trump, averting a rise in tariffs to 145 per cent which had become effective in April. This peak set off intense volatility, as China countered with restrictions on key materials vital to American manufacturers. A temporary truce in May saw tariffs on Chinese goods reduced to 30 per cent, while China reciprocated by lowering its own rates on American imports to 10 per cent and resuming the export of rare earth elements.

Diplomats from both countries recently convened in Stockholm for high-level talks, striving to resolve outstanding issues in the ongoing trade dispute. US Treasury Secretary Scott Bessent emerged from these discussions reportedly optimistic, suggesting that both sides are intent on working towards a more permanent framework as the new deadline approaches in the autumn.

Pressures remain, with President Trump urging Beijing to significantly increase agricultural purchases from the United States, notably soybeans, although commentators have raised doubts regarding the achievability of such targets. Additionally, the White House continues to press China on the matter of energy imports, threatening further penalties should Chinese companies continue purchasing Russian oil.

Experts in international trade, such as Ryan Majerus of King and Spalding, see the delay as an important confidence-building measure, providing diplomats space to attempt a breakthrough. Majerus noted the likelihood that future agreements will incorporate investment commitments, reflecting the complex nature of the bilateral trade relationship.

The president also moved to quash recent speculation regarding tariffs on gold imports, assuring markets during a press conference that gold bullion would not be included in any future trade actions. This assurance followed a temporary posting by US Customs and Border Protection which had briefly indicated new tariffs could be placed on the widely traded commodity.

While leaders on both sides continue to express confidence in their working relationship, the fundamental issues underlying the trade war remain unresolved. Analysts will be watching closely as the new deadline approaches, mindful that another escalation would affect markets far beyond the US and China.