BEIJING, Nov 9 – China will continue suspending an additional 24 per cent tariff on imports from the United States for another two months.
The extension will take effect at 1.01 pm on Tuesday, Nov 10. However, China will maintain the existing additional 10 per cent tariff on US goods.
China’s State Council, which serves as the country’s cabinet, announced the decision on Monday.
The move aims to support the trade understanding reached between Chinese and US leaders during their September meeting in Washington.
China Seeks More Stable Trade Relations
The latest decision gives both countries more time to work towards improving their economic and trade relations.
China said the extension would help create a more stable and predictable environment for businesses in both countries.
It also aims to support continued trade cooperation between the world’s two largest economies.
However, the extension does not mean both countries have reached a final trade agreement.
Following the September summit in Washington, both sides proposed a US$60 billion package of reciprocal tariff reductions.
The proposal includes around US$17 billion worth of US agricultural products that China imported in 2024.
However, the two countries have yet to finalise the package.
China Watches US Tariff Policy
Meanwhile, Beijing has raised concerns about Washington’s future tariff plans.
China said it had taken note of US statements about replacing tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
Those tariffs faced legal challenges and were later ruled invalid by US courts.
Washington has indicated that it intends to use Section 301 of US trade law as an alternative.
Section 301 allows the US government to investigate and respond to certain foreign trade practices it considers unfair.
China said it would closely monitor further US actions.
It also warned that it could adjust its tariff countermeasures depending on future developments.
What the Extension Means for Businesses
The two-month extension offers temporary relief to US exporters and companies involved in trade with China.
The continued suspension means the additional 24 per cent tariff will not take effect during this period. However, the existing 10 per cent additional tariff remains.
Businesses will therefore continue to monitor trade negotiations and possible changes in tariff policies.
For now, the latest decision provides both countries with more time to pursue a workable trade arrangement.
However, uncertainty remains as Washington and Beijing continue discussions over their wider economic relationship.
Source : AWANI | Rewritten By Minutesmy
