Johann Wilfred
- U.S. President Donald Trump signed an executive order on Monday that officially extends the tariff pause on China
- The new pause continues to freeze the triple-digit tariffs that were escalated in April
- The new pause is the result of talks held in Stockholm last month between both countries
U.S. President Donald Trump signed an executive order on Monday that officially extends the tariff pause on China, as per information relayed from unnamed sources to CNBC and Reuters. The new pause continues to freeze the triple-digit tariffs that were escalated in April between the U.S. and China as both countries geared up for a trade war.
“We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the basis of equality, respect and mutual benefit,” said Foreign Ministry spokesman Lin Jian.
The new pause is the result of talks held in Stockholm last month between both countries to seek a solution to the tariffs. While officials from each side walked off with no official confirmation, the decision made by Trump is attributed to those efforts.
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While many economists and intellectuals have opposed the idea that tariffs will only hurt the global and U.S. economy due to companies shifting the new import duties onto customers, the Trump administration continues to maintain that the tariffs will encourage businesses to build in America instead of importing.
Execution of Trump Tariffs still unclear
The current strategy of the administration is still muddled, with various countries having reached out to negotiate for better terms after initial tariffs in April. While Trump settled on a few trade deals, he also signed orders further hiking tariffs for countries such as India for buying Russian oil.
