Less than 24 hours before the deadline, President Donald Trump has signed an executive order extending the tariff pause for imports from China for another 90 days.
- This will take the new deadline to November 10, allowing for negotiations between the two world powers to take place in that time.
- China has announced a parallel pause on extra tariffs for U.S. imports into China, creating something of a standstill on what remains a tense situation with global supply chain implications.
If the deadline wasn’t extended, then U.S. duties on China would have shot back up to where they stood in April, when the tariff war between the world’s largest trading nations was at its peak.
At that time, Trump had cranked up blanket tariffs on Chinese imports to 145%, and China had retaliated with 125% duties on U.S. goods.
- For the next 90 days, pending a new deal, the pause locks in 30% tariffs on Chinese imports entering the U.S.
Promo Perspective
The new 90-day pause is welcome development for firms, especially when compared to the potential of 145% blanket tariffs that had remained a possibility as time ticked away on the previous deadline. With the holiday season approaching, such a drastic surge in tariffs would likely affect not just the promo industry but the overall economy.
What is less welcome but perhaps becoming old hat at this point is the constant uncertainty surrounding tariff threats versus their actual implementation, making actual planning around them nearly impossible.
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Chris Anderson, member of the PPAI Board of Directors and CEO of HPG, PPAI 100’s No. 4 supplier, which has a production presence in Mexico, told PPAI Media in July that the uncertainty surrounding tariffs has forced a long-term approach without reacting too dramatically to new developments.
“HPG’s position throughout all the tariff uncertainty has been, and continues to be, one of focus on our long-term initiatives, being mindful to not become prisoners of the moment and avoiding meaningful decisions based on, what is likely to be, a temporary (likely mid-negotiation) position,” Anderson says.
