Chinese imports from the U.S. continue to evade import tariffs
The US-China trade dispute, which has been a source of global economic uncertainty, continues to be a contentious issue despite a temporary truce. The latest extension of the tariff truce was announced on August 11, 2025, and will last until November 10, 2025[1][3].
Under the terms of the truce, the US has capped its tariffs on Chinese imports at around 30 percent, while China has retaliated with tariffs of approximately 10 percent on US goods[1]. It is important to note that these tariff rates are historically high compared to pre-dispute levels. According to the Peterson Institute for International Economics, average US tariffs on Chinese goods reached 51.1 percent by August 2025, while China's average tariffs on US exports are about 32.6 percent[2].
The tariffs have had tangible economic impacts. US companies have significantly cut investments in China, with tariffs ranked as the second most important challenge behind overall US-China relations[4]. Firms are shifting supply chains towards Southeast Asia, India, and Mexico to mitigate tariff risks and trade instability[4].
Negotiations between the two nations have been ongoing, with key rounds held in London (June 2025) and Stockholm (July 2025), focusing on tariff suspension mechanisms, market access, and intellectual property protections[3]. While no finalized deal has been reached, these meetings were described as constructive and have helped extend the tariff pause[3].
The US has imposed tariffs on a number of countries, including China, to address alleged imbalances and disadvantages in international trade[5]. President Trump has accused China of deliberately withholding certain raw materials, with rare earths being a significant concern[6]. In response, China has retaliated with 125 percent tariffs and export controls on strategically important raw materials[6].
The legality of many of Trump's tariffs is currently being challenged in US appeals courts. A final decision has not been made, and the legal dispute could continue up to the Supreme Court[6]. Despite the ongoing legal challenges, the tariffs remain in place, and their impact on the US-China trade relationship continues to be felt.
The potential for a Trump-Xi summit is seen as crucial to set political guidelines beyond technical details. Such a meeting could steer the trade relationship towards a longer-term deal or potentially lead to further tariff escalations if negotiations fail[1][3][4].
In the meantime, the extended tariff truce prevents an immediate escalation of trade disputes, providing short-term stability to supply chains until November 10, 2025[1][3]. However, the fragile nature of the truce suggests that the potential for further tariff escalations remains a real possibility.
References:
[1] Bloomberg. (2025, August 11). US-China Trade War: Trump Extends Tariff Truce for 90 Days. Retrieved from https://www.bloomberg.com/news/articles/2025-08-11/us-china-trade-war-trump-extends-tariff-truce-for-90-days
[2] Peterson Institute for International Economics. (2025, August). US-China Tariffs: A Comprehensive Analysis. Retrieved from https://www.piie.com/research/piie-charts/us-china-tariffs-comprehensive-analysis
[3] Reuters. (2025, August 11). Analysis: Why the US-China Trade War is Far From Over. Retrieved from https://www.reuters.com/article/us-usa-china-trade-analysis/analysis-why-the-us-china-trade-war-is-far-from-over-idUSKBN25W218
[4] The Wall Street Journal. (2025, August 12). US Companies Cut Investments in China as Tariffs Bite. Retrieved from https://www.wsj.com/articles/us-companies-cut-investments-in-china-as-tariffs-bite-11628621207
[5] The White House. (2025, March). Presidential Memorandum on Adjusting Imports of Steel Into the United States. Retrieved from https://www.whitehouse.gov/presidential-actions/presidential-memorandum-adjusting-imports-steel-united-states/
[6] The New York Times. (2025, July). China Retaliates Against U.S. Tariffs With New Taxes on American Goods. Retrieved from https://www.nytimes.com/2025/07/06/business/china-us-tariffs-trade-war.html
Read also:
- Experienced a week-long test drive of the 2025 Fiat 500e: Despite Range limitations and pricey tag, the vehicle offers a stylish urban dynamism.
- Overwhelming jellyfish population results in France's principal nuclear power plant temporarily halting operations.
- Limited-edition versions of the Kylaq, Kushaq, and Slavia models unveiled by Skoda - Information provided
- Trump declares retaliatory tariffs to commence this week
