President Donald Trump has once again given a 90-day extension to the temporary agreement on trade tariffs between the U.S and China to expire on November 10. This ruling comes as the hours are ticking away to the expiry of the former agreement, which was meant to expire on the same day of trade talks in Stockholm to continue the negotiations.
The Ministry of Commerce of China has declared that it would remove the additional tariffs on imports entering China and postpone the ban on American firms although it would maintain the 10 percent tariffs, which were already in place.
Without an agreement, Trump has threatened to put up to 245 percent tariffs into place, and China has issued threats to apply up to 125 percent retaliatory tariffs.
Economists, such as the Federal Reserve, have upheld that the tariffs will drive prices to United States consumers.
According to Goldman Sachs, at present, Americans bear 22 percent of the tariff burden, and it could increase to 67 percent. Meanwhile, other corporations such as Nvidia and AMD have entered into agreements to pay 15 percent of the Chinese chip sales revenue as an export license which has been linked to insinuation of possible profits that may arise out of the U.S trade regulations.
