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Trade dispute between US and China temporarily suspended

Trade negotiations remain on hold, with both parties postponing elevated tariffs in the ongoing trade dispute until the next 90 days. The extension of this agreement was recently announced.

Trade disagreement between US and China temporarily ceased.
Trade disagreement between US and China temporarily ceased.

Trade dispute between US and China temporarily suspended

The ongoing trade tensions between the United States and China have been a significant global concern in recent years. In 2025, the trade war between the two economic powerhouses escalated, with both countries implementing tariffs on each other's imports.

Tariffs

The U.S. imposed several rounds of tariffs on Chinese imports, starting with a 10 percentage point increase on February 4 and March 4. These tariffs covered all imports from China[1]. The tariffs increased further, with notable hikes in April 2025 totaling 125 percentage points[1]. As of August 11, 2025, China's country-specific tariff rate is suspended until November 10. During this period, imports from China are subject to a 10% baseline tariff[2][4].

Technology Restrictions

Technology has been a contentious issue in U.S.-China relations, with concerns over intellectual property rights, security, and trade competitiveness. The U.S. has been focusing on strategic areas such as rare earth elements and advanced technologies, aiming to reduce dependence on China[3]. Specific recent developments regarding technology restrictions are not detailed in the available search results.

Ongoing Negotiations

Despite the tensions, both countries are engaged in ongoing discussions to address trade imbalances and security concerns[4]. A lasting agreement remains elusive, with both sides seeking leverage and improvements in their economic and national security positions[3].

In May, both the U.S. and China agreed to a 90-day suspension of new tariffs in Geneva. This suspension was extended until November 10, 00:01 local time (Washington time). The U.S. government collects a 15% share of sales of AI chips from American companies Nvidia and AMD to China[5].

The U.S. has accused China of deliberately withholding certain raw materials[6]. China, however, has shown openness to progress in talks with the U.S. and has consistently pursued corresponding countermeasures to U.S. tariffs[7].

A direct conversation between U.S. President Trump and Chinese President Xi Jinping is considered crucial for setting political guidelines beyond technical details. Further talks took place in London in June and in Stockholm in late July, but ended without a result[8].

A commentary in the state-run "People's Daily" stated that Beijing is ready to achieve substantial progress with Washington[9]. China continues to advocate for constructive dialogue, refraining from unilateral concessions in trade talks with the U.S.[10]

Trump initially demanded 20% from Nvidia CEO Jensen Huang for the country[11]. Unlike many other countries, China responded to U.S. tariffs with immediate retaliatory tariffs[12].

The U.S. intends to continue talks with China to address trade imbalances[13]. The extension of the suspension prevents an escalation of trade disputes for the time being. Achieving a lasting agreement will require careful negotiation and compromise from both sides.

  1. The escalating trade war between the United States and China resulted in the implementation of tariffs, a significant aspect of policy-and-legislation in recent general-news coverage, that affected numerous imports from China.
  2. Regarding ongoing negotiations between the two countries, the focus lies not only on tariffs but also on technology restrictions, an area of politics that has been a contentious issue in US-China relations.

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