US extends tariff deadline for certain Chinese goods following India's increase in tariffs, as per Donald Trump's decision
In a significant development, the US and China have agreed to extend the tariff pause on most of their goods, following a series of negotiations. This decision comes after the US representatives met with their Chinese counterparts for the first time in Switzerland.
The extension of the tariff deadline was announced by the White House, as reported by Reuters, pushing back the August 12 deadline for higher US tariffs on Beijing. This decision was made after several rounds of trade negotiations between the two countries.
The US and China were involved in a fierce trade war earlier this year, with tariffs between the two nations crossing the 100 percent mark. However, the US has now agreed to lower its tariffs on Chinese goods to 30 percent, down from an earlier 145 percent. Similarly, China has lowered its tariffs on US goods to 10 percent, down from an earlier 125 percent levy.
The US tariffs on China's goods were a part of the trade war, with tariffs on select product categories such as electric vehicles, solar cells, syringes and needles, and semiconductors reaching up to 100 percent. The average US tariff on Chinese exports was around 51.1 percent, but had earlier spiked as high as 126.5 percent before reductions.
Meanwhile, India has responded to the US tariffs, calling them unfair and citing the US's own trade with Moscow. India has accused the US of double standards in imposing tariffs, particularly due to India's purchase of oil from Russia amidst its war with Ukraine. The US has imposed a 50 percent tariff on goods imported from India, which was raised from an initial 25 percent levy.
The US-China tariff pause extension comes hours after Trump lauded China's cooperation in talks with the US. The development is a positive step towards easing the tensions between the two economic powerhouses. However, the US-India trade tensions continue to persist, with both countries yet to find a resolution.
References:
- US Tariffs on China: A Timeline of Escalation
- US-China Trade War: A Comprehensive Guide
- The Maximum Tariff Percentage Imposed by the US on Chinese Imports During Their Trade War
- Despite the US and China reaching an agreement to extend the tariff pause, ongoing trade tensions persist between the US and India, with the latter accusing the US of imposing unfair tariffs and asserting double standards.
- Amidst the US-China trade war resolution, India remains wary of US politics and legislation, emphasizing policy-and-legislation regarding import tariffs, given India's significant oil purchases from Russia and ensuing US fees, making India a topic of general-news concern.
