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Trump delays higher tariffs on China


President Donald Trump on Monday postponed a planned increase in tariffs on Chinese goods just hours before they were set to take effect, extending a trade truce between the two countries.

The U.S. and China have been negotiating since May, when they agreed to pause a heated trade war that saw threats of tariffs as high as 145% from Washington and 125% from Beijing. China also cut off exports of rare earth magnets to the U.S. during that period. The temporary deal reduced those extreme rates, with U.S. tariffs currently set at 30%. Under Trump’s new order, that rate will hold until November, when a fresh 90-day deadline expires.

“The United States continues to have discussions with the People’s Republic of China to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns,” Trump said. He noted that China had made “significant steps” toward resolving U.S. complaints about unfair trade practices.

Trump has floated the idea of a U.S.-China summit in the fall, saying potential topics could include artificial intelligence technology, energy cooperation, rare earth resources, and China’s purchase of Russian oil.

The Chinese embassy in Washington responded with a call for continued dialogue. Spokesperson Liu Pengyu said both sides should “enhance understanding, reduce misperceptions, and strengthen cooperation” based on equality and mutual respect.

While easing up on China, Trump has taken a much tougher stance on India. Last week, he raised tariffs on Indian goods from 25% to 50%, citing India’s purchases of Russian oil. “India has not been a good trading partner,” Trump said, arguing that the trade balance is lopsided and that buying Russian oil “fuels the war machine.”

India now faces one of the highest U.S. tariff rates of any major economy, even though China imports more Russian oil than India.

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