By Christopher Bodhine
Taiwan, Taiwan (AP) – The 90-day suspension is expected to expire Tuesday after imposes high tariffs on China, and it is unclear whether it will be extended.
After the latest China-US trade talks held in Stockholm last month, Chinese and US officials said they expect the deadline to be extended for another 90 days. The US said the decision was left to President Donald Trump. So far, there has been no official announcement as to whether he would support the extension or move forward with higher tariffs.
Uncertainty leaves companies in Limbo and the decision to raise import duties could cause global markets to clash.
Silence from Washington and Beijing
Trump has repeatedly changed deadlines and tariff rates, with neither side showing plans Tuesday. Extending the August 12 deadline to reach a trade agreement with China will prevent the previous threat of tariffs up to 245%.
Treasury Secretary Scott Bescent said Trump is deciding an additional 90 days delay to resolve details of contract setting that would set tariffs at 50% on most products, including additional import operations related to illegal trade in the powerful opiate fentanyl.
The higher tariffs are intended to offset the huge and chronic US trade deficit with China. This hit its lowest level in 21 years in July as a tariff threat to China’s exports.
It is not uncommon for the US to give hints on where the meeting is, but it is rare for China to make an announcement until a major decision is set. So far, Beijing has declined to comment ahead of Tuesday’s deadline.
Vice President JD Vance, recorded on Thursday but aired Sunday in an interview with Fox News, said Trump is considering additional fees in Beijing for China’s Russian oil purchases. But he said Trump has “not made a solid decision.”
China resisted cutting off its early bargains
The extremely high tariffs on exports to the US to China will put a lot of pressure on Beijing as the world’s second-largest Chinese economy recovers from a long-term recession in the real estate market. The prolonged impact of the Covid-19 pandemic has led millions of people to rely on “gig work” and squeeze the job market. Increased import taxes on small plots from China have also hurt small factories, and layoffs are accelerating.
However, the US relies heavily on imports from China for all kinds of products, from household goods and clothing to wind turbines, basic computer chips, electric vehicles, and the rare earths needed to make them. This will give Beijing strong leverage in negotiations with Washington.
Even with high tariffs, China remains competitive with many products. And its leaders recognize that the US economy is only beginning to feel the impact of higher prices from Trump’s widespread tariff hikes.
For now, imports from China are subject to a 10% baseline tariff and a 20% surcharge related to the fentanyl issue. Some products are taxed at a higher price. US exports to China are subject to approximately 30% tariffs. Before both sides were called the armistice, Trump threatened to impose 245% of Chinese goods imports. China retaliated by raising tariffs on US products to 125%.
Many are in danger
The trade war between the two biggest economies of the world will affect the global economy as a whole, affecting industrial supply chains, demand for commodities such as copper and oil, and geopolitical issues such as the Ukrainian War.
After a call with Chinese leader XI Jinping in June, Trump said he hopes to meet with XI later this year. It is an incentive to sign a contract with Beijing.
If both parties cannot maintain an armistice, trade tensions will escalate, tariffs will rise to even higher levels, causing even more pain to both the economy and the global market. Companies refrain from investing commitments or employment, but inflation is high.
Oxford Economics said in a recent report that businesses are in “expanded standby mode.”
Original issue: August 11, 2025, 11:39am EDT
