US and China trade talks: Tariff increases suspended

The planned tariff increases in trade between the US and China remain suspended for the time being. US President Donald Trump signed a decree postponing the implementation until 00:01 (Washington time) on November 10. The Beijing Ministry of Commerce also confirmed the new deadline shortly afterwards.

The United States intends to continue talks with China to resolve trade imbalances, the decree stated. “All other elements of the agreement remain unchanged,” Trump wrote on his platform Truth Social. The US president spoke of a 90-day postponement.

Us and China talks resume

Since April, the US had gradually increased import tariffs on Chinese goods to up to 145 percent. China responded with counter-tariffs of up to 125 percent and imposed export controls on strategically important raw materials. In May, both sides agreed in Geneva to a 90-day suspension of the new tariffs. Further talks followed in London in June.

At the end of July, delegations from the world’s two largest economies met in Stockholm for new talks on their tariff conflict, but without result. After two days of trade talks, both sides left open whether the suspension would be extended again. The previous pause would have expired this Tuesday.

The now announced extension avoids an escalation of the trade disputes for now. Presidents Trump and Xi Jinping may meet at a later date. Direct talks between the two heads of state are considered crucial to setting political guidelines beyond technical details.

Dispute revolves around more than just tariffs

Tensions between the two countries go far beyond the issue of tariffs. Beijing has criticised US export controls on semiconductors and AI chips, which make it difficult for Chinese companies to access modern technology. Washington, in turn, accuses China of deliberately withholding certain raw materials.

Just on Monday, Trump confirmed media reports that the US government was taking a 15 percent share of sales of AI chips from American companies to China. He said that he had initially even demanded 20 percent from Nvidia CEO Jensen Huang – “for the country”.

Despite the harsh rhetoric, both governments recently sent signals of rapprochement. China has shown itself open to progress. An editorial in the state-run "People's Daily", the mouthpiece of the Communist Party, said Beijing was ready to make substantial progress with Washington. China continues to advocate constructive dialogue.

Unlike many other countries, China reacted to the punitive tariffs introduced by the US under Trump from the outset with immediate counter-tariffs. Beijing refrained from unilateral concessions and instead consistently relied on corresponding retaliatory measures.

This article was translated to English using an AI tool.

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