China will extend its suspension of an additional 24% tariff on U.S. imports, while maintaining other trade and shipping measures amid ongoing negotiations between Washington and Beijing.
On Monday, China announced that its tariff suspension will continue for two months beginning at 1:01 p.m. Tuesday. A 10% tariff will remain in place, though.
Beijing’s Transport Ministry also extended its suspension of special port fees affecting U.S.-linked vessels through Jan. 10, 2027. A probe into shipping and shipbuilding supply-chain security will remain suspended during that period.
China’s State Council tariffs panel tied the extension to outcomes and consensus reached during a Washington meeting between the countries’ leaders. The world’s second-largest economy said it would monitor any potential U.S. use of Section 301 tariffs and adjust its countermeasures based on subsequent developments.
The broader discussions included proposals for $60 billion in reciprocal tariff reductions, including roughly $17 billion in U.S. agricultural products imported by China during 2024. The agreement has not been finalized.
Trump’s Tariff Plans Amid Post-Midterm China Ties
The extension arrives as Goldman Sachs economists expect President Donald Trump to pursue additional tariffs following the U.S. midterm elections. Economists Alec Phillips and Abhay Duggirala said new trade levies could emerge after the election, as Washington faces rising war costs and approximately $40 trillion in national debt.
They also said that potential Democratic efforts to repeal selected tariffs would likely have limited effects, particularly if focused on Canada or individual products.
Meanwhile, U.S. trade investigators have reportedly completed much of their work on Section 301 probes into 16 economies over alleged industrial overcapacity, potentially paving the way for additional tariffs. The Trump administration has reportedly held off announcing the duties until after the midterms amid concerns that higher import costs could worsen affordability pressures. China could face a 7.5% tariff, although the proposed rate has not been officially confirmed.
Meanwhile, Shanghai Institutes for International Studies President Chen Dongxiao said the midterm results are unlikely to significantly alter U.S. policy toward China, arguing that Trump would retain broad foreign-policy authority and both parties largely share a similar approach to Beijing.
Notably, Trump and Chinese President Xi Jinping are scheduled to meet in Shenzhen later this month on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
Recent Comments