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yesterday

U.S. and China Extend 90-Day Tariff Truce, Keeping Effective Rates High

Companies gain breathing room to restructure supply chains under high layered duties ahead of the truce’s November expiry.

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Overview

  • President Trump signed an executive order on August 11 to freeze planned tariff increases on Chinese imports until November 10.
  • China’s Ministry of Commerce issued a reciprocal suspension of additional duties and paused Unreliable Entity List measures for 90 days.
  • The U.S. composite tariff on Chinese goods remains around 30%, combining a 10% baseline duty, a 20% fentanyl-related surcharge and legacy levies that can reach 55%.
  • Major U.S. retailers and manufacturers are front-loading holiday orders to secure current rates while reassessing China-plus-one sourcing strategies under prolonged trade costs.
  • With July tariff revenues surging to roughly $25 billion and a Federal Circuit stay on an IEEPA ruling, legal and fiscal uncertainties heighten the risk of re-escalation when the truce ends.