China extends suspension of additional 24% tariffs on US imports:Xi Jinping led govt retains 10% baseline duties

China has extended the suspension of additional tariffs on United States imports for another year, the XI Jinping led government’s national news paper, ‘Global Times’ said citing an official statement from the Customs Tariff Commission of the State Council of the chinese government. What Happened? The leaders of China and the US, Xi Jinping and Donald Trump, earlier met and agreed to extend a “truce” in their trade dispute. Apparently, they won’t be adding new tariffs for now. China’s Move China announced that it would continue to suspend extra tariffs of 24% on US goods for another year. This was part of the agreement reached between the two leaders. US Follows Suit The US also said it would cut its tariffs on Chinese goods in half, from 20% to 10%. Why the Trade War? Earlier this year, the US and China were in a trade war, putting tariffs on each other’s products. This made goods more expensive and hurt trade between the two countries. Impact on Farmers China also said it would stop adding extra tariffs on American farm products like soybeans, corn, and wheat. This is important because the trade war had hurt American farmers, who sell a lot of their products to China. Rare Earths and Other Issues Additionally, China agreed to suspend restrictions on exporting rare earths technology. Rare earths are important materials used in many products, like electronics and cars. The US also agreed to suspend restrictions on certain Chinese companies. What It Means This agreement is a sign that two of the world’s largest economies are trying to ease tensions and work together on trade. It could lead to more stable trade relations and lower prices for consumers. However, the agreement is only for one year, so the future of trade between the two countries is still uncertain!