China extends suspension of extra tariffs on US goods

BEIJING – China said on Nov 5 it would extend a suspension of additional tariffs on US goods for one year, making official an agreement reached in talks between presidents Xi Jinping and Donald Trump last week.

The two leaders

held talks in South Korea

at the end of October that effectively extended a delicate truce for a year after several rounds of trade negotiations in recent months.

A statement published on Nov 5 on the Ministry of Finance website, citing Beijing’s State Council, said that “for one year, the 24 per cent tariff on US goods will continue to be suspended, (and) a 10 per cent tariff on US goods will remain”.

The statement said the pause follows “the consensus reached in the China-US economic and trade consultations” and would be effective from Nov 10. Mr Trump on Nov 4 formalised an agreement that

Washington would cut its additional tariffs

on Chinese imports from 20 per cent to 10 per cent, also effective from Nov 10.

Temperatures have spiked between the world’s two biggest economies in 2025 as Washington and Beijing imposed escalating tariffs on each other’s products.

At one point, duties on both sides reached prohibitive triple-digit levels, hampering trade.

The two have been engaged in an uneasy truce since, as top economic leaders met several times for talks in recent months, with tensions surging over export controls and other issues.

In a separate statement, China said it would “cease implementing the additional tariff measures” imposed in a March order hitting a list of American farm products.

That move was a response to Mr Trump doubling additional tariffs on Chinese goods over Beijing’s handling of fentanyl – now back to 10 per cent starting next week.

Beijing had placed an additional 15 per cent levy on chicken, wheat, corn and cotton imported from the US and an additional 10 per cent tariff on American soya beans, pork, beef, dairy and other farm products.

That had hurt a key source of Mr Trump’s political support: farmers.

More than half of US soya bean exports went to China in 2024, but Beijing halted all orders as the trade dispute deepened.

Also following talks, Beijing agreed to

suspend for one year

restrictions on the export of rare earths technology. Rare earths are a strategic field dominated by China and are essential for manufacturing in defence, cars and consumer electronics.

Washington, in turn, agreed to suspend for one year a move imposing “Entity List” export restrictions on affiliates of blacklisted foreign companies in which they had at least a 50 per cent stake, the Chinese Commerce Ministry said.

The US also said it would halt for a year measures targeting China’s shipbuilding industry that led to both sides applying port fees against each other’s ships, it said.

China would suspend its “countermeasures” after the US action, they added, also for one year. AFP