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US-China Trade War Update - With this new Trump China tariff extension, the US will keep charging a 30% tax on Chinese goods, and China will keep its 10% tax on American products. This stops a big jump in these taxes that could have made US rates go up to 145% and Chinese rates to 125%.
The pause in tariffs gives both countries more time to keep talking. Recent meetings, including some in Stockholm, have been positive, and there is hope that Trump and Chinese President Xi Jinping will meet later this year. Experts say the delay helps US stores as they get ready for the important holiday shopping season, letting them avoid sudden price increases from tariffs.
However, the main problems are still there. Experts say these taxes still hurt shoppers, since many of the extra costs have already been added to prices. Goldman Sachs says American shoppers paid for 22% of the higher taxes by June 2025, and that could go up to 67% if things keep going the same way.
The White House says the extension is meant to show good intentions and help lower trade tensions, hoping both sides can agree on a deal that works for everyone. Still, experts say there are still big disagreements about technology, important materials, and fair trade that have not been solved.
As the new November deadline approaches, all eyes will be on whether diplomatic progress continues or if the pause serves merely as a temporary reprieve in a longer trade standoff.
