Trump signed the agreement at the last minute, keeping the other terms of the deal unchanged
And it posted on the platform emphasizing that "all other terms of the agreement will remain unchanged." The report also said that the executive order was signed by Trump just a few hours before the tariff suspension period was about to expire. This is a typical "Trump-style negotiation", keeping everyone in suspense and not announcing the result until the very last moment.
China responded by retaining the 10% tariff and suspending the 24% additional levy
Almost at the same time, China announced that starting from 12:01 on August 12, the 24% additional tariff imposed on US products would also be suspended for 90 days, but the 10% tariff would be retained. The two sides also issued the "Joint Statement of the China-Us Economic and Trade Talks in Stockholm". In its statement, the US side committed to continuing to adjust the measures of imposing additional tariffs on Chinese goods (including those from Hong Kong and Macao), and to suspend the implementation of the 24% equivalent tariff for 90 days starting from August 12.
The business community is calling out "crucial"
Sean Stein, chairman of the US-China Business Council, told the Associated Press that this extension is "crucial" and can buy more time for both China and the United States to promote trade agreements that improve business access in each other's markets. The business community in the United States generally hopes to obtain the certainty needed for medium - and long-term planning through this.
The global supply chain is catching its breath
In May this year, after the Geneva talks, China and the United States announced a 90-day truce on the trade dispute. At the end of July, the two sides met in Stockholm, Sweden, to jointly promote the extension of the deadline. The tariff truce has been extended until November 10th, which has bought crucial time for the export peak season of the autumn Christmas season (including electronic products, clothing and toys, etc.), allowing these goods to be exported at lower tariff rates. Both sides will continue to carry out economic and trade discussions within the framework of the established mechanism.
The renewed suspension of tariffs this time means that the cost pressure on enterprises will be significantly alleviated, product prices can be more competitive, and it is expected to regain some market share. American enterprises that import Chinese goods can also reduce procurement costs and increase profit margins. It is not only of great significance to bilateral trade enterprises, but also injects confidence into the stable development of global trade. In the current context where the interdependence of the global economy is deepening day by day, the easing of trade relations between China and the United States, the two major economies, is conducive to stabilizing the global supply chain and industrial chain and promoting the recovery and development of the world economy. Subsequently, the two sides will continue to carry out economic and trade discussions within the framework of the established mechanism, which is worthy of continuous attention from all sectors.
