Experts explained Trump's intention to freeze tariffs against China

American President Donald Trump extended the current tariffs against China for another 90 days for a reason, until November 9, experts interviewed by Izvestia believe.

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The United States is aware that its economy is closely linked to China's, so it is not able to impose conditions on Beijing that are of interest only to them, said Olga Belenkaya, head of the Macroeconomic Analysis Department at Finam. Both countries now do not want to return to the harsh escalation of the conflict that took place in April, when the amount of mutual tariffs was over 100%.

In addition, according to Sergey Potapov, a senior analyst at BCS World Investments, Washington is afraid of inflationary pressures and disruptions in logistics on Christmas Eve, so it extended the tariff pause.

The website of the Ministry of Commerce of the People's Republic of China clarified that the United States and China jointly agreed to "again postpone the implementation of 24% tariffs for another 90 days," starting on August 12. For now, they will keep a 10% rate on each other's goods.

Trump is trying in every possible way to support the country's economy in order to increase budget revenues against the backdrop of a growing national debt — it is already above $ 37.2 trillion. The administration also wants to encourage local producers and encourage citizens to buy domestic goods.

According to the experts interviewed, Trump may postpone the duties again in November if the negotiations are successful. Nevertheless, there are still risks of introducing high tariffs, said Vladimir Chernov, analyst at Freedom Finance Global.

Read more in the exclusive Izvestia article:

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