US President Trump extended another customs break shortly before the expiry. What does the new 90-day postponement mean for China and the USA? And what will happen in the next three months?
The United States has exposed its increased tariffs to Chinese imports by another 90 days and thus cleared the way for an extension of the mutual customs break.
US President Donald Trump signed a corresponding decree a few hours before the previous regulation has expired. The break would actually have expired today.
What has happened so far, how high are the tariffs currently?
Even in spring, both economies had mutually overwhelmed with extreme customs sets – the United States gradually increased the extra taxes on Chinese imports to 145 percent, while China countered with 125 percent and export controls on strategically important raw materials. In fact, no trade between the two nations was possible, which also affected the global economy.
As a result, the covered tariffs were then suspended for 90 days in mid -May. This break was dated until August 12th and was now extended by another 90 days. The new deadline is valid until November 10th. The United States still want to have talks with China. Until then, the reduced customs sets apply: Washington raises a 30 percent serve while Beijing demands ten percent.
How do the United States justify its tariffs?
Trump feels badly treated by a variety of countries. He regularly speaks of how the United States had been carved by other nations when trading. In order to compensate for the alleged imbalances and disadvantages in international trade, he grumbled tariffs.
In addition, Trump wants to ensure that companies move their production from abroad and thus also from China to the USA and thus strengthen their own location.
What does China want?
From a Chinese perspective, the punitive tariffs of the United States are unjust and politically motivated. So far, Beijing has reacted most sharply among all trading partners – and has answered Trump’s measures almost mirror image. China wants to make it clear that it is not dependent on a quick deal and that there are mutual dependencies in the trade. Beijing also uses ongoing trade talks to negotiate access to advanced AI chips from the USA. The US government has significantly restricted deliveries for years.
Washington, in turn, accuses China of specifically holding certain raw materials back. The focus is on rare earths, which are used by smartphones, screens or semiconductors during production.
What’s next?
First, the extended break prevents an escalation of the trade disputes. At a later point in time, President Trump and XI Jinping could meet. A direct conversation between the two heads of state is crucial in order to infect political guidelines beyond technical details.
Are Trump’s tariffs legally permissible at all?
On Thursday, appellant in the USA still dealt with the legality of many tariffs in a hearing. At the end of May, an appellate court had initially lifted the legade of almost all tariffs of the US President who had ordered a lower instance – the Court of International Trade in New York – shortly before. There is no decision yet. And even then the legal dispute could go on – and ultimately end up in front of the highest US court.
With information from dpa.
