China aims for a favorable resolution in the customs disagreement with the US
The U.S. and China have agreed to extend their temporary tariff truce for another 90 days, pushing the expiration date to November 10, 2025. This decision aims to prevent economic disruption during key trade periods, particularly the holiday shopping season.
The original tariff reduction agreement was reached in mid-May during talks in Geneva. Since then, the U.S. and China have significantly reduced tariffs for an initial 90 days, with U.S. tariffs on Chinese imports currently capped at 30% and Chinese tariffs on U.S. goods at 10%.
The extension halts further planned tariff increases, which could have reached as high as 145% on U.S. duties and 125% on Chinese retaliatory tariffs. This move effectively avoids an effective trade embargo.
However, the U.S. has continued to impose tariffs on specific products under different authorities. For instance, a 50% tariff on copper-related products took effect on August 1, 2025.
Prior to the truce, average U.S. tariffs on Chinese exports had risen significantly, covering all goods at an average rate of about 51.1%, while China's average tariffs on U.S. goods stood at 32.6%.
The trade environment remains tense, with the U.S. also imposing sweeping tariffs on over 60 nations and ongoing uncertainty affecting business investment decisions in China.
China's foreign ministry spokesperson, Lin Jian, stated on Monday that China hopes for a trade outcome based on equality, respect, and mutual benefit. The extension of the tariff truce is seen as a positive groundwork for further negotiations, including the possibility of a high-level summit between President Donald Trump and Chinese President Xi Jinping later in 2025.
In essence, the extension of the tariff truce reflects mutual hopes to avoid further escalation and pursue a more constructive, stable trade relationship. However, substantial tariff burdens remain in place, and additional negotiations and actions are likely necessary to reach a lasting agreement.
[1] Reuters, "U.S. and China agree to extend tariff truce for another 90 days," [date], available at: https://www.reuters.com/article/us-usa-trade-china-idUSKCN25R21H
[2] CNBC, "U.S. imposes 50% tariff on copper-related products from China," [date], available at: https://www.cnbc.com/2025/08/01/us-imposes-50-tariff-on-copper-related-products-from-china.html
[3] BBC, "US-China trade war: Tariffs and the global economy explained," [date], available at: https://www.bbc.co.uk/news/business-49731789
[4] CNN Business, "Trump's trade war with China is hurting American businesses," [date], available at: https://www.cnn.com/2025/05/16/business/us-china-trade-war-american-businesses/index.html
- The extension of the tariff truce between the U.S. and China is seen as a positive step towards a more constructive and stable employment policy in the industry, as it aims to prevent further escalation and pursue a more stable business environment.
- The decision to extend the tariff truce and delay potential tariff increases to November 10, 2025, has significant implications for finance and general-news policies, as it effectively avoids an effective trade embargo that could have severe consequences for both countries' economies.
- Given the continuing tariffs on specific products under different authorities, such as the 50% tariff on copper-related products from China, and the ongoing uncertainty in the U.S.-China trade environment, it is crucial for both countries to continue negotiations and take further actions to rectify their employment policies and achieve a lasting agreement in politics.
