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US and China extend tariffs deadline again
The world's two largest economies, the US and China, have again extended the deadline for tariffs to come into effect.
A last-minute executive order from US President Donald Trump will prevent taxes on Chinese imports to the US from rising to 30%. Beijing also announced the extension of the tariff pause at the same time, according to the Ministry of Commerce.
Those tariffs on goods entering the US from China were due to take effect on Tuesday. The extension allows for further negotiations with Chinese Premier Xi Jinping and also prevents tariffs from rising to 145%, a level threatened after tit for tat increases in the wake of Trump's so-called liberation day announcement on 2 April.
It's the second 90-day truce between the sides. The countries reached an initial framework for cooperation in May, with the US reducing its 145% tariff on Chinese goods to 30%, while China's 125% retaliatory tariffs went down to 10% on US items.
A tariff of 20% had been implemented on China when Mr Trump took office, over what his administration said was a failure to stop illegal drugs entering the US. Sector-specific tariffs, such as the 25% tax on cars, aluminium and steel, remain in place.
Welcome news Hopes of an eventual permanent deal led to optimism among investors as Japanese and Australian stock markets hit record highs. Chinese stock markets rose in response to the news, with Hong Kong's Hang Seng up 0.25%.
The Shanghai Composite stock index rose 0.5%. Stocks in Europe also got a boost with the Europe-wide Stoxx 600 index rising 0.26% and the UK's benchmark FTSE 100 gaining 0.32% as mining company share prices rose.
Such companies are intertwined with the Chinese economy..
Amir Nisi
Creative and experienced content writer with 6+ years of experience lazy to create unique content strategy for News5 to turn website visitors into customers.
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