White House Council of Economic Advisors Chair Stephen Miran explains why tariffs are not causing a spike in inflation on ‘Varney & Co.’
President Donald Trump has pushed off imposing higher tariffs on China until November, just before additional tariffs were set to take effect Tuesday.
An executive order from the president was signed Monday that will prevent higher tariffs from going into effect against China for another three months – until Nov. 9.
The extension comes after Treasury Secretary Scott Bessent participated in trade negotiations in May with China in Geneva that resulted in a deal to temporarily ease up on strict tariffs imposed in April for 90 days.
TRUMP SAYS CHINA AGREES TO ‘FULLY’ OPEN COUNTRY’S MARKETS TO US BUSINESSES
Specifically, the U.S. agreed it would cut down its tariffs against Chinese imports from 145% to 30%, and China agreed it would reduce its tariffs against U.S. imports from 125% to 10%.
President Donald Trump speaks during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on April 2, 2025 in Washington, DC. (Chip Somodevilla/Getty Images / Getty Images)
But that temporary agreement would have expired Tuesday, meaning that the 145% tariffs originally imposed in April as part of Trump’s so-called “Liberation Day” would be reimposed again.
TRUMP AND CHINA CLOSE IN ON TRADE DEAL AFTER PRODUCTIVE TALKS, BESSENT SAYS
Earlier Monday, Trump signaled he was undecided on whether he would kick back the deadline, but said that trade negotiations with China were progressing well.
“We’ll see what happens. We’ve been dealing very nicely with China…they have tremendous tariffs that they’re paying to the United States of America,” Trump told reporters. “We’ll see what happens. They’ve been dealing quite nicely. The relationship is very good with President Xi and myself.”
Secretary of Treasury Scott Bessent and U.S. President Donald Trump look on during The White House Digital Assets Summit in the State Dining Room of the White House on March 07, 2025, in Washington, DC. (Anna Moneymaker/Getty Images / Getty Images)
The two countries engaged in trade talks from Sweden at the end of July, following which questions of a potential tariff extension loomed as no final answer was given.
Trump signaled this month that if the two countries can come to an agreement, he intends to meet with the Chinese president before the end of the year.
