In a bid to steady choppy economic waters, the U.S. and the Chinese mainland have quietly agreed to extend the suspension of 24 percent reciprocal tariffs for another 90 days. This marks the third extension since negotiators met in Geneva in May 2025.
Both sides reaffirmed their commitment during late July talks in Stockholm, underscoring a shared insight: cooperation yields broader benefits than confrontation. Yet, deep structural and political constraints make sweeping tariff rollbacks unlikely in the near term.
With domestic pressure mounting in Washington, large-scale tariff cuts face hurdles. Beyond maintaining the current 24 percent ceiling, the only significant concession on the table could be a targeted 20 percent reduction linked to the global fight against fentanyl. But these talks remain deadlocked.
Extending the suspension offers a practical pause, giving markets and negotiators room to reassess. If no comprehensive deal emerges by mid-November, a fourth 90-day extension may be on the horizon, U.S. commerce leaders hint.
Sector-specific exemptions or fresh levies on select industries could become the next negotiation flashpoints. Meanwhile, global supply chains and consumer prices will be key barometers. U.S. inflation in the fourth quarter, especially during the holiday shopping season after Thanksgiving, could shift political calculations.
High-level diplomacy may also reshape the outlook. President Trump has suggested another summit with the Chinese mainland's leadership. A successful meeting could unlock breakthroughs, but past patterns suggest any gains could be fragile and subject to reversal.
For now, the extension offers a fragile yet necessary pause. As businesses, travelers, and global citizens watch, the world waits to see if this window of stability will hold or give way to fresh uncertainty.
Reference(s):
China, U.S. extend tariff hike suspension: Stability amid uncertainty
cgtn.com
