US-China Trade War: 90-Day Tariff Pause Averted, Averting High Tariffs on Goods Between World’s Largest Economies

The U.S. and China have reached an agreement to postpone the escalation of tariffs on each other’s goods for another 90 days, according to various reports quoting White House officials. Without this arrangement, tariffs were due to increase immediately, potentially leading to a resurgence of trade restrictions at levels that previously posed significant barriers between the world’s two largest economies.

Initially reported by CNBC, this development transpired just hours before a 12:01 am ET deadline when tariffs on Chinese goods were set to escalate from 30% to 64%. The specific rates China might have imposed on American goods remain uncertain, as these currently face minimum 10% tariffs.

The news follows President Trump’s imposition of “reciprocal” tariffs on international trading partners, which has elevated the U.S.’s effective tariff rate to levels last seen during the Great Depression.

CNN sought comment from White House officials regarding this matter.

If the tariffs on Chinese goods, America’s second-largest source of imports, were to increase, it is likely that many American businesses and consumers would face higher costs or are already grappling with increased import taxes due to Trump’s previously enacted tariffs.

This story is still in development and will be updated as more information becomes available.