U.S. And China Delay Tariffs For Another 90 Days

The U.S. and China have delayed for another 90 days the tariffs they have threatened to impose on one another.

The latest extension staves off triple-digit import duties on Chinese goods as American companies build their inventories ahead of the year-end holiday shopping season.

U.S. President Donald Trump announced on social media that he had signed an executive order suspending the tariffs on China until Nov. 10 of this year.

At the same time, China’s Commerce Ministry enacted a similar extension, saying it would suspend or remove new tariffs on U.S. imports.

Trump had demanded in recent days that China quadruple its purchase of U.S. soybeans to help American farmers. However, China’s government has not responded to that demand.

The previous tariff delay had been due to expire on Aug. 12. The new extension until November buys crucial time for the autumn surge of imports for the busy Christmas shopping season.

U.S. tariffs on Chinese goods could have risen to 145%, while Chinese tariffs on U.S. goods were set to reach 125%, rates that would have crippled trade between the world’s two biggest economies.

President Trump has said that trade negotiations with China are ongoing and that the two countries are close to an agreement, although nothing has been announced yet.

The U.S. trade deficit with China declined by about one-third in June of this year to $9.5 billion U.S., its lowest level since February 2004.