United States President Donald Trump has signed an executive order extending the China tariff deadline for another 90 days. The extension came just hours before midnight in Beijing, when the 90-day pause was set to expire. White House official confirmed the extension, which will prevent duties on Chinese goods from returning to 145 percent.
The pause comes as negotiations between the two countries continue. Trump said he has been “dealing very nicely with China” as Beijing seeks positive outcomes. “We’ll see what happens. They’ve been dealing quite nicely. The relationship is very good with [China’s] President Xi [Jinping] and myself,” Trump said.
Chinese Foreign Ministry spokesman Lin Jian expressed hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state. “We hope that the US will work with China to strive for positive outcomes on the basis of equality, respect and mutual benefit,” Lin said.
The extension of the tariff pause is expected to lower anxiety on both sides as talks continue. Ryan Majerus, a former US trade official, welcomed the news, saying it will give both countries more time to work through some of the longstanding trade concerns. “This will undoubtedly lower anxiety on both sides as talks continue, and as the US and China work toward a framework deal in the fall,” Majerus said. For now, fresh US tariffs on Chinese goods this year stand at 30 percent, while Beijing’s corresponding levy on US products is at 10 percent.
Markets reacted relatively flat to the news, with the Nasdaq down 0.07 percent and the S&P 500 down 0.08 percent. The Dow Jones Industrial Average was down about 0.4 percent at 3:30 pm in New York. Kelly Ann Shaw, a senior White House trade official during Trump’s first term, said the extension was expected. “It wouldn’t be a Trump-style negotiation if it didn’t go right down to the wire,” she said. The extension gives both countries more time to work toward a potential deal, with investment commitments likely to factor into any agreement.