Adds details throughout on the tariff delay
The US and China have agreed to extend a pause on higher tariffs until 10 November, keeping intact lower rates that have been in place over the last three months while bilateral negotiations continue on a broader trade agreement.
President Donald Trump, in an executive order signed on Monday, said the US had agreed to a 90-day suspension of higher rates in light of the "significant steps" China has taken toward addressing US concerns about "non-reciprocal" trade. The US will retain tariffs on imports from China at a minimum rate of 30pc, and China will retain retaliatory tariffs of 10-15pc on most energy and agricultural commodities from the US.
Trump hinted earlier in the day that an extension of the tariff pause was likely because of progress in negotiations with Chinese president Xi Jinping.
"They've been dealing quite nicely," Trump said on Monday. "The relationship is very good with President Xi and myself."
China confirmed the suspension of the tariff increase in a joint statement with the US. On Monday, China's foreign ministry said it hoped the US would "work for positive outcomes on the basis of equality, respect and mutual benefit."
China is the third largest trading partner of the US, which last year imported $439bn of goods from China and exported $143bn. Trump increased tariff rates on dozens of countries last week, but so far has declined to further raise tariffs on China, even as he prepares to double tariffs on India to 50pc on 27 August.
The existing minimum 30pc tariff on China is stacked on other "sectoral" tariffs, pushing the effective tariff on Chinese imports to 41pc, credit ratings service Fitch Ratings said in a report earlier this month. Absent the 90-day suspension signed on Monday, the US would have increased its minimum tariff on China to 54pc, pushing up the cost of goods ahead of the holiday season.
Trump last week threatened that China could be subject to additional "secondary" tariffs for its purchases of Russian oil, but so far has only put that penalty on India. US vice president JD Vance said on 10 August that Trump was still "reviewing his options" but that putting secondary tariffs on China would be "a little bit more complicated" because of broader trade issues.
