U.S. President Donald Trump has signed an executive order extending the suspension of high U.S. tariffs on Chinese goods for an additional 90 days, according to a White House official who spoke to CNBC. The order was signed just before midnight, as the previous tariff pause was due to expire. This extension follows recent negotiations between U.S. and Chinese trade representatives, held in Stockholm, Sweden, late last month.
Kevin Breuninger and Eamon Javers for CNBC:
President Donald Trump has signed an executive order that will prevent high U.S. tariffs on Chinese goods from snapping back into effect for another 90 days, a White House official told CNBC on Monday afternoon.
If the deadline was not extended, then U.S. duties on China would have shot back up to where they stood in April, when the tariff war between the world’s largest trading nations was at its peak.
The two sides had agreed to pause most of the tariffs on each other’s goods in May, after negotiators met for the first time in Geneva, Switzerland.
That 90-day pause was set to end Tuesday, prior to Trump signing the latest order to extend it.
MacDailyNews Take: Hopefully, progress is being made in U.S.-China trade negotiations.
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ding ding, your TACO is ready 😂
TACO strikes again!!
Just for the record China is currently being slapped with a tariff of between 30 an 54 percent.
The funds levied are meant to be put into a general fund to pay for such things as social security rather than pay for it from deficit funding.
There has also been talk of funding the mega tax cuts for the “uber” wealthy. I suspect this will add to the deficit. My proof for this is that when they passed the One Big Beautiful bill it also contained a section where they raised the debt ceiling. I mean if the legislation was self funded then why would you raise the ceiling?
Another reason for the tariffs being raised is for geopolitical reasons. The US can show it is powerful enough to push around other countries.
However there are a number of problems with this approach.
The first is that America isn’t paying it’s own way and they’re playing with fire by mucking around with, for example, labour statistics which the Fed needs to set out interest rate levels.
Linked with this is the attempt by the President to tilt the Reserve with his own appointees. If this were to happen then long term rates would increase and this in turn would make it more difficult to issue bonds in exchange for selling debt to investors.
Then there’s the problem with US public relations. In Australia we have a trade agreement with the US and the latter has a trade surplus with Australia. No problem, you’d think; except America slapped a ten percent tariff on Australia.
So how popular is President Trump with one of its most loyal ally? On average President Trump is disliked by 70 percent of Australians and that’s the case throughout most of the world.
So how do tariffs really affect the average consumer? Well I’ll show you how it affected me…an average consumer. I’m in the process of buying a Mac Mini with a whole number of related goodies.
One of those peripherals is an SSD hub which connects to the Mac Mini. The hub is made in China and is then exported to the EU and the USA and other countries as well. Now I bought it through Amazon Australia from a German vendor for $AUS180. They then sold out and it next listed for $AUS270 from an American outlet. This increased price is from President’s tariff. You see it’s not that the world hates Americans, it’s just that we can’t afford to buy things from you.