Tariffs Halt Expansion for 90 Days, Except for China, in Surprising About-Face by Trump
In a recent development, President Donald Trump has announced a 90-day suspension on reciprocal tariffs between the United States and China. This move comes as an effort to facilitate ongoing negotiations addressing trade imbalances, unfair practices, market access, and national security concerns between the two nations.
The suspension, initially set to expire on August 12, 2025, has been extended to November 10, 2025. During this period, a 10% reciprocal tariff baseline will remain in effect to support American producers and workers. This pause specifically applies to tariffs imposed on Chinese imports under Executive Order 14298 and related tariff measures, but other U.S. tariffs on China remain in place.
The purpose of this suspension is to advance productive trade talks while maintaining a fair baseline tariff rate that encourages domestic production and strengthens supply chains. The ongoing trade dialogue aims to address U.S. concerns about the persistent trade deficit and national security issues related to China.
It's worth noting that this tariff plan has caused frustration among various countries around the world. For instance, Singapore's Prime Minister Lawrence Wong criticized the U.S.'s tariff plan, stating it is "rejecting the very system it created."
At a press conference outside the White House, Treasury Secretary Scott Bessent declared victory, stating that the U.S. will negotiate in good faith and assumes the same from their allies. Trump spoke to reporters, insisting that he had succeeded and was now going to get trade concessions from other countries. He also mentioned that 75 countries have called to negotiate on trade-related issues.
Trump's advisor, Peter Navarro, known for supporting tariffs, was absent from the press conference announcing the tariff pause. Trump stated that there will be fair deals with every country, but that they were not fair to the United States. He also raised tariffs on China to 125%.
The baseline 10% tariff will apply to the European Union as well. However, 25% tariffs on Canada and Mexico will remain in place, according to a report by CNBC. Trump first announced his tariff plan on April 2, 2025.
In response to a question about the sudden 90-day pause on tariffs, Trump responded that people were getting "yippy." He also acknowledged that he was watching the bond markets, stating that they can be tricky. At 1:02 p.m. ET on Wednesday, the S&P 500 surged without any major news, leading some to wonder what was happening.
In conclusion, the 90-day suspension on reciprocal tariffs between the United States and China is aimed at facilitating productive trade negotiations. The tariff rate during this suspension remains at 10%, and the suspension exclusively concerns reciprocal tariffs between the two nations. Other U.S. tariffs on China remain in effect. The U.S. will continue to negotiate in good faith, assuming the same from their allies, and aims to secure fair trade deals with every country.
- The future of tech and technology industry, particularly in relation to finance and business, may witness significant changes as a result of the ongoing trade talks between the United States and China.
- In light of Trump's recent tariff suspensions and negotiations, various foreign countries, including the European Union, are monitoring the situation closely to understand the potential impacts on their industries in the near future.
- With the 10% tariff baseline remaining in effect for the extended period, domestic production in the tech sector, especially in the US, might be boosted, altering the global tech market landscape in the upcoming years.
