The United States and China have agreed to extend their trade truce and tariff pause.
According to BBC, oil prices rose on Tuesday, August 12, after the two biggest economies in the world decided to pause higher tariffs till November 10 this year, eliminating the concerns regarding trade war.
Ahead of the crucial holiday season for US retailers, US President Donald Trump on Monday, August 11, signed executive orders to extend the traffic truce with Beijing, avoiding a spike in tariffs on Chinese goods that would have hit triple digits.
The agreement means that US tariffs on Chinese imports will remain 30%, while China will maintain a 10% tariff on American goods.
The White House said that the extension will give the two leading economies of the world time to negotiate about "remedying trade imbalances" and "unfair trade practices."
A spokesperson for the Chinese embassy in Washington asserted, “Win-win cooperation between China and the United States is the right path, suppression and containment will lead nowhere."
China also urged the US to lift “unreasonable” trade restrictions and invite it to work together for mutual benefit and global stability.
Notably, the US earlier hit tariffs as high as 145% on Chinese goods in response, China threatened to slap American shipments with 125% duties. However, after Geneva trade talks, both of the countries agreed to scale back their tariff rates.
