US-China Trade Negotiations Extended: Trump Delays Tariffs on Chinese Goods Amidst Potential Deals with Apple, Nvidia, and AMD
The United States President has extended the deadline for imposing increased tariffs on Chinese imports until mid-November, as reported by CNBC. This means that the new tariff deadline now stands on November 10th, beyond which import taxes of up to 145% will be levied on Chinese goods entering the US. In response, China has threatened to impose reciprocal tariffs of 125% on American goods imported into their country.
Both nations have delayed the deadline to continue trade negotiations. Representatives from the U.S. and China held talks in Stockholm, Sweden, in late July, where substantial progress towards a deal was reportedly made. US Treasury Secretary Steven Mnuchin expressed optimism about the potential for a deal that would benefit both countries via a social media post, which has since been removed. He also stated that President Trump holds the final say on all trade deals.
The extended delay implies that tariffs of 30% will remain in place for imports into the U.S., while 10% levies continue on goods entering China. The latest extension provides relief to American businesses working with suppliers, manufacturers, and other parties in China, who have been affected by the ongoing trade tensions.
Last week, President Trump also announced plans to impose a 100% tariff on chips and semiconductors manufactured outside the U.S. In response, companies like Apple and Nvidia have met with the President. Apple has pledged an additional $100 billion investment in the U.S., on top of a previously promised $500 billion.
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. The timing for resumption of Chinese-U.S. trade negotiations is yet to be confirmed, but updates are expected over the next 90 days as both countries seek a resolution.
The ongoing trade tensions may result in fluctuations in the prices of consumer tech goods, with brands potentially raising prices. For instance, Nintendo recently announced plans to increase the price of its original Switch console by up to $50 due to market conditions.
