The 90-Day Suspension of 24% Tariffs between China and the US: A Positive Step Forward
In a significant development for global trade, on August 12, 2025, China and the United States jointly announced that they would once again suspend the implementation of 24% tariffs on each other's goods for a period of 90 days. This decision, as stated in the "Joint Statement of the China-US Economic and Trade Talks in Stockholm," comes as a welcome relief to businesses and economies on both sides of the Pacific.
The Details of the Tariff Suspension
The United States will continue to modify the implementation of the ad valorem tariffs on Chinese goods (including those from the Hong Kong Special Administrative Region and the Macau Special Administrative Region) as stipulated in Executive Order 14257 of April 2, 2025. Starting from August 12, 2025, the 24% tariff will be suspended for another 90 days, while retaining the remaining 10% tariff on these goods.
Correspondingly, China will also adjust the implementation of the ad valorem tariffs on US goods as specified in the Announcement of the Customs Tariff Commission of the State Council No. 4 of 2025. From August 12, 2025, the 24% tariff will be suspended for 90 days, with the remaining 10% tariff on these goods maintained. Additionally, China will take or maintain necessary measures to suspend or remove non-tariff countermeasures against the United States as agreed in the Geneva Joint Statement.
The Significance of This Move
This extension of the tariff suspension is a positive signal that both China and the US are committed to seeking a more stable and cooperative trade relationship. The initial 90-day suspension, which was part of the Geneva Joint Statement, has shown some positive effects on bilateral trade. By continuing this suspension, it provides a more stable environment for businesses in both countries. It allows American importers to access Chinese goods at a relatively lower cost, which can help control inflationary pressures in the US. On the other hand, Chinese exporters can maintain their market share in the US, supporting employment and economic growth in China.
Moreover, this move also indicates that the two economic powerhouses are willing to engage in dialogue and negotiation rather than escalating trade tensions. It gives hope for further progress in resolving long-standing trade disputes, such as issues related to intellectual property rights, market access, and trade imbalances.
Looking Ahead
While this 90-day suspension is a step in the right direction, there is still a long way to go for a comprehensive and lasting trade agreement between China and the US. In the coming 90 days, it is expected that both sides will continue to hold in-depth discussions on a series of trade-related issues. This may include more detailed negotiations on tariff adjustments, the removal of non-tariff barriers, and cooperation in emerging fields such as green technology and digital trade.
The business communities in both countries will be closely watching these developments. A more stable and open trade environment will not only benefit Chinese and American companies but also have a positive spillover effect on the global economy. As the world's two largest economies, any positive progress in China-US trade relations will contribute to global trade growth and economic stability.
In conclusion, the decision to suspend the 24% tariffs for another 90 days is a positive development that offers new opportunities for China-US economic and trade cooperation. Let's hope that this momentum can be maintained and lead to more substantial and beneficial outcomes for both countries and the world at large.
