China Extends Suspension of Additional Tariffs on US Goods

China announced on Wednesday that it would extend the suspension of additional tariffs on American goods for one year, formalising an agreement reached last week between Presidents Xi Jinping and Donald Trump.

The two leaders met in South Korea at the end of October, effectively agreeing to extend a delicate trade truce for a further year following several rounds of negotiations in recent months.

A statement published on the Chinese Ministry of Finance website, citing the State Council, said: “For one year, the 24 percent tariff on US goods will continue to be suspended, and a 10 percent tariff on US goods will remain.”

The statement added that the pause reflected “the consensus reached in the China–US economic and trade consultations” and would take effect from 10 November.

On Tuesday, Trump formalised a separate agreement in which Washington would reduce its additional tariffs on Chinese imports from 20 percent to 10 percent, also effective from 10 November.

Tensions between the world’s two largest economies have escalated this year as both sides imposed increasing tariffs on each other’s products, at one point reaching prohibitive triple-digit levels that severely disrupted trade.

Since then, the two countries have maintained an uneasy truce, with top economic leaders meeting several times, though friction has continued over export controls and other issues.

In a separate announcement, China said it would “cease implementing the additional tariff measures” imposed in March on a range of American farm products.

These tariffs had been introduced in response to Trump doubling levies on Chinese goods over Beijing’s handling of fentanyl. The rates will now return to 10 percent from next week.

Previously, China had applied an additional 15 percent levy on chicken, wheat, corn, and cotton from the US, as well as a 10 percent tariff on American soybeans, pork, beef, dairy, and other farm products—impacting a key base of Trump’s political support, US farmers.

More than half of US soybean exports were destined for China last year, but Beijing halted all orders amid the escalating trade dispute.

Following the talks, Beijing also agreed to suspend for one year restrictions on the export of rare earth technology—a strategic sector dominated by China, essential for defence, automotive, and consumer electronics manufacturing.

Meanwhile, Washington agreed to suspend for a year “Entity List” export restrictions affecting affiliates of blacklisted foreign companies in which the US held at least a 50 percent stake.

The US also committed to halting measures targeting China’s shipbuilding industry, which had led to reciprocal port fees being applied against each other’s vessels. China, in turn, said it would suspend its countermeasures for one year in response to the US action.