Customs dispute: Trump extends break – what consequences does this have for the global economy?

Customs dispute: Trump extends break – what consequences does this have for the global economy?

In a surprise move, the US has suspended increased tariffs on Chinese imports for another 90 days. US President Donald Trump signed a decree at short notice that extended the regulation originally set for today, August 12, 2025, until November 10, 2025 at 00:01 a.m. Washington time. As a result, the 30 percent surcharge on Chinese goods remains in place until further notice, while China responds to imports with 10 percent. Loud krzbb.de This tariff policy, which originally began in the spring by increasing tariffs to up to 145 percent, is leading to a de facto trade stoppage between the two nations.

What does this mean for the global economy? According to a report by ZDF today Trade between the USA and China fell dramatically last year. Chinese exports to the US fell 34.5 percent in May, while imports fell 18.1 percent. Such figures make it clear that the trade dispute is not only putting a significant strain on both countries, but also on the global economy.

Negotiations in London

In order to defuse the tense relationships, they meet in London. Senior delegations from both countries, including China's Vice Prime Minister He Lifeng and US Treasury Secretary Scott Bessent, are holding talks on the tariff dispute. The negotiations, which were already agreed in mid-May, focus on the following topics: Beijing's export controls for rare earths and the restrictions on the sale of cutting-edge technology to China. However, details of the talks have not yet been communicated by Beijing. Trump has merely indicated that finer details of the trade deal are being discussed, while informing the international community that outstanding issues remain.

But China's economic situation is tense. Market research shows that weak domestic demand and a real estate crisis are making conditions more difficult for German companies waiting for export licenses for rare earths. What is particularly striking here is that while China's exports to the Federal Republic of Germany rose by 21.5 percent in May, imports from Germany fell by 1.3 percent. A trend that does not go unnoticed and is causing concern for the German economy.

The future of trade

Analysts predict that the escalation of trade disputes can be prevented for the time being by the extended tariff break. An early meeting between Trump and Chinese President Xi Jinping could potentially help smooth things over. In the meantime, US appeals judges are reviewing the legality of the existing tariffs, with a final decision still pending.

The situation remains tense, and the next steps on the international trade stage could be crucial to whether and how economic relations between the US and China develop further. It remains to be seen whether the negotiations in London are fruitful or whether the two powers will go to war on tariffs again.