China Extends Suspension of Additional 24% Tariffs on US Imports for One More Year

Digital Desk

China has announced an extension of its suspension of additional tariffs on United States imports for another year, retaining its baseline 10% duties, according to an official statement from the Customs Tariff Commission of the State Council, reported by the Global Times.

The move follows a meeting between Chinese President Xi Jinping and former US President Donald Trump, during which both leaders agreed to maintain a “truce” in the ongoing trade dispute. As part of the agreement, China will continue to suspend extra tariffs of 24% on US goods, while the United States will cut its tariffs on Chinese products from 20% to 10%.

The trade war, which escalated earlier this year, led to higher costs for goods and disrupted trade between the two nations. American farmers, in particular, were affected as tariffs on products such as soybeans, corn, and wheat curtailed exports to China. The extension of tariff relief is expected to provide much-needed support to the US agricultural sector.

In addition to tariffs, China has agreed to suspend restrictions on exporting rare earth technology, a crucial component in electronics, electric vehicles, and other advanced products. The United States, in turn, has suspended certain restrictions on Chinese companies, signaling a cautious easing of trade tensions.

Analysts say the agreement reflects both nations’ interest in stabilizing trade relations and mitigating economic uncertainty. “This is a positive step toward restoring predictability in global trade, though the one-year term means long-term stability remains uncertain,” said a Beijing-based trade expert.

While the agreement does not resolve all outstanding disputes, it signals a temporary thaw in relations between the world’s two largest economies. Businesses and consumers on both sides may benefit from lower costs and smoother trade flows in the near term, even as broader negotiations continue.