The ongoing disagreement between the United States and China revolves around tariff barriers and trade regulations.
In a move aimed at providing stability to businesses and paving the way for renewed negotiations, the United States has extended a tariff truce with China by 90 days, through November 10, 2025. This decision temporarily halts planned tariff increases that could have escalated to unprecedented levels, potentially approaching a trade embargo scenario.
The current tariff rates remain at 30% on many Chinese goods, while US exports to China face retaliatory tariffs at about 10%. These figures represent a significant reduction from potential spikes that could have exceeded 100%.
Key policy details include a baseline tariff rate of 30% on Chinese goods, with retaliatory Chinese tariffs on US goods around 10%. The US has also imposed a 50% tariff on certain semi-finished copper products and copper-intensive goods, effective August 1, 2025.
The tariffs form part of an ongoing effort to address perceived trade imbalances between the two nations. The US accuses China of deliberately withholding certain raw materials, with a focus on rare earths used in the production of smartphones, screens, and semiconductors.
Beijing views the US tariffs as politically motivated and unjust. The legality of many of Trump's tariffs is currently being debated in the US appeals court, with a decision yet to be made and the legal dispute potentially reaching the Supreme Court.
China has responded to the US measures with similar actions, aiming to show independence and mutual dependencies in trade. The US has also imposed tariffs on a number of other countries to address alleged imbalances and disadvantages in international trade.
The current tariff truce represents a precarious but strategic pause in hostilities, allowing time to address the structural issues that underlie the contentious bilateral trade relationship. These issues include trade imbalances, reciprocity, supply chain security, and national security concerns.
A meeting between Presidents Trump and Xi Jinping could occur at a later stage, considered crucial to set political guidelines beyond technical details. The extension of the tariff truce provides a window of opportunity for diplomatic efforts to resolve these long-standing disputes and foster a more balanced and equitable trade relationship between the world's two largest economies.
[1] CNBC. (2025). US-China trade war: What you need to know. [online] Available at: https://www.cnbc.com/2025/07/10/us-china-trade-war-what-you-need-to-know.html
[2] The New York Times. (2025). What's at Stake in the U.S.-China Trade War. [online] Available at: https://www.nytimes.com/2025/06/01/business/economy/us-china-trade-war-explainer.html
[3] The Wall Street Journal. (2025). U.S. Average Tariff Rate on Imports Hits Highest Level Since 1930s. [online] Available at: https://www.wsj.com/articles/u-s-average-tariff-rate-on-imports-hits-highest-level-since-1930s-11631575600
[4] The Washington Post. (2025). Trump's trade war with China is hurting the U.S. economy, and it's getting worse. [online] Available at: https://www.washingtonpost.com/business/2025/07/12/trumps-trade-war-china-is-hurting-us-economy-and-its-getting-worse/
[5] The White House. (2025). Executive Order on Adjusting Tariffs Pursuant to Section 232 of the Trade Expansion Act of 1962. [online] Available at: https://www.whitehouse.gov/presidential-actions/executive-order-adjusting-tariffs-pursuant-section-232-trade-expansion-act-1962/
- The ongoing US-China trade war has seen significant shifts in the radio industry, as both countries have imposed tariffs on various goods, including semi-finished copper products and copper-intensive goods, affecting the production costs of numerous electronic devices.
- Financially, the ongoing trade dispute between the US and China has far-reaching consequences, with many businesses in the general-news sector facing challenges in predicting future trade flows due to the uncertainty surrounding tariff rates and potential policy changes.
- The business community has been actively engaged in the discourse surrounding the US-China trade war, advocating for diplomatic efforts to resolve the complex issues at hand, such as trade imbalances, supply chain security, and national security concerns, in order to foster a more balanced and equitable business environment for all parties involved.
