Portugal Colonial - China Extends Tariff Suspension on US Imports to Stabilize Trade Ties

China announced Tuesday that it will extend the suspension of an additional 24 percent tariff on goods from the United States for another two months. The decision, confirmed by the Customs Tariff Commission of the State Council, is viewed by analysts and business leaders as a critical step toward stabilizing bilateral trade relations and providing greater predictability for companies operating in an uncertain global economic environment.

The commission stated that while the additional tariff suspension is extended, China will maintain a 10 percent additional tariff on US imports. The announcement also addressed recent developments in US trade policy, noting repeated American statements regarding plans to replace tariffs imposed under the International Emergency Economic Powers Act with those under Section 301 of the US Trade Act of 1974. The International Emergency Economic Powers Act tariffs were previously struck down by the US Supreme Court. China stated it would closely monitor subsequent US measures and adjust its tariff countermeasures accordingly.

In a related move, the Ministry of Commerce announced on Monday that China will extend by another two months, starting Tuesday, the suspension of measures against 11 US entities placed on its unreliable entity list in April 2025. Export restrictions on dual-use items involving 16 other US entities will also remain suspended for two more months. A ministry spokesperson clarified that Chinese companies seeking to conduct business with the 11 listed entities can apply for approval, while exporters seeking to supply dual-use items to the 16 entities must obtain licenses from the ministry. Applications meeting regulatory requirements will be approved.

Fu Suixin, an associate researcher at the Chinese Academy of Social Sciences' Institute of American Studies, emphasized that greater tariff and trade policy stability would allow businesses on both sides to make investment and sourcing decisions with more confidence. This comes amid global supply chain adjustments, volatile energy costs, and changing trade policies.

Zhao Minghao, a professor and deputy director of Fudan University's Center for American Studies in Shanghai, noted that despite persistent differences over trade and technology, sustained high-level dialogue and effective communication mechanisms could help China and the US manage disputes and maintain more predictable economic ties.

Despite ongoing trade tensions, data from the General Administration of Customs shows that China-US trade in goods grew 4.1 percent year-on-year to 3.18 trillion yuan ($476.5 billion) in the first three quarters of 2026.

Wang Ruibin, chairman of Ningbo Sibranch Microelectronics Technology Co, a semiconductor silicon wafer processor based in Ningbo, Zhejiang province, said the duty adjustments and reciprocal tariff reductions can provide greater pricing certainty for businesses in both China and the US. According to Ningbo Customs, the company imported nearly 4 million yuan worth of silicon wafers in the first 10 months of 2026, up 30 percent year-on-year. "US-made products account for nearly 60 percent of our silicon wafer imports, and our finished products are mainly exported to the US, Vietnam and Malaysia," Wang said.

For US companies operating in China, bilateral economic ties extend well beyond tariffs. Speaking at his company's booth at the 9th China International Import Expo, which runs through Tuesday in Shanghai, Jeffery Fay, senior vice-president of global product development and consumer strategy at US audio technology company Harman International, said China remains central to the group's global strategy, serving as both a major consumer market and a hub for technological innovation. With 5,200 employees and four research and development centers in China, Harman benefits from the country's advanced manufacturing capabilities and extensive supply chain network, helping the company expand across the Asia-Pacific region and serve customers worldwide, Fay said.

Christopher Eck, director of the Indiana Soybean Alliance, said that greater predictability in Chinese purchases is welcomed by US farmers grappling with rising production costs, offering an encouraging sign for bilateral agricultural trade.

L.Carrico--PC