The US and China have averted a potential major trade crisis by postponing the implementation of reciprocal tariffs exceeding 100% for 90 days. The decision will allow retailers to increase their stocks, especially before the end-of-year holiday season.
US President Donald Trump announced on his social media account that the higher tariffs have been suspended until November 10.
The Chinese Ministry of Commerce simultaneously took a similar step. This extension prevented the US tariffs on Chinese goods from reaching 145% and China from reaching 125%. Currently, the tariffs will remain at 30% and 10% respectively. The decision was positively received by the markets; Asian stock markets rose, and currencies stabilized. However, experts warn that “the game is not over yet.” Both sides continue to seek solutions to the long-standing issues of trade imbalance and economic security.Analysts believe that a final agreement is likely due to the deep economic interdependence between the two countries. However, it is noted that Trump is demanding more concessions from China and that this process could continue until the fall.
