US and China delay trade deal deadline

The United States and China have agreed to push back today’s self-imposed deadline for reaching a trade deal.

(CNN) – The United States and China have agreed to push back today’s self-imposed deadline for reaching a trade deal, allowing current tariff rates to remain in place for another 90 days as negotiations continue.

President Donald Trump expressed optimism about the ongoing talks, saying, “They’ve been dealing quite nicely. The relationship is very good with President, with President Xi and myself.”

An executive order signed by Trump last night keeps the U.S. tariff rate on Chinese imports at 30 percent, preventing a previously scheduled increase to 54 percent. Similarly, China confirmed it will maintain its duties on U.S. imports at 10 percent instead of raising them to 34 percent.

The tariffs have had a noticeable impact on American businesses and consumers. Erik Fabian, co-founder of Sourhouse, said, “With the tariffs going up and down, our prices go up and down.” China is America’s second-largest source of imports, and many U.S. companies rely on Chinese goods for the products they sell.

Ryan Petersen, CEO of supply chain logistics company Flexport, explained the dilemma businesses face: “At the end of the day, either there’s only a couple of things that can happen. Either the companies make less money, or the prices go up for the consumers, and we all know what companies are going to choose.”

In addition to the tariff delay, Trump announced he is allowing China to purchase certain American-made semiconductor chips, with the U.S. government set to receive 15 percent of related revenue.