Trump Delays US-China Tariffs by 90 Days: A Look into the Evolution of U.S.-PRC Trade Talks
The U.S. President has extended the deadline for elevated tariffs on Chinese imports until mid-November, pushing back the initial deadline of August 11. This decision was reciprocated by China, confirming the postponement before the original cutoff.
According to an executive order signed yesterday, discussions between the U.S. and the People’s Republic of China are ongoing to address trade imbalances and related national security concerns. The order states that China is making significant strides towards rectifying non-reciprocal trade practices and addressing U.S. concerns regarding economic and national security issues.
Under this extension, tariffs will be delayed until 12:01 a.m., Eastern Standard Time, on November 10, 2025. Initially, Chinese goods entering the U.S. would have been subject to a 145% tariff, with China retaliating with a 125% reciprocal tariff on American goods. However, under the new terms, Chinese goods will incur a 30% tariff, while China will collect a 10% tariff temporarily.
U.S.-China trade talks took place in Stockholm, Sweden, in late July, with U.S. Treasury Secretary Steven Mnuchin expressing optimism about the potential for a mutually beneficial deal. However, his tweet regarding the prospective agreement has since been deleted. Mnuchin also confirmed that President Trump holds the ultimate authority over all trade deals.
The recent developments have created uncertainty for U.S. businesses dealing with suppliers, manufacturers, and other parties in China. Last week, President Trump announced plans to impose a 100% tariff on chips and semiconductors manufactured outside the U.S.
During an Oval Office event that included Apple CEO Tim Cook, Trump also pledged an additional $100 billion towards his company’s U.S. manufacturing commitment. However, specifics regarding the assessment of these commitments or buildouts have yet to be disclosed by the White House.
In a separate development, Nvidia and AMD have agreed to contribute 15% of their revenue from AI chip sales directly to the U.S. government. This decision may lead to continued fluctuation in the prices of consumer tech goods. In early August, Nintendo announced an increase in the price of its original Switch console by up to $50 due to market conditions.
