Trump extends China deadline as Asian markets reel from tariff blitz

President Donald Trump has delayed tariffs on Chinese goods from resuming for another 90 days, extending the deadline until mid-November as global trade tensions continue to reshape economic relationships across Asia and beyond.

Catch up: The extension came hours before Tuesday’s original deadline, when U.S. duties on China would have surged to April’s unprecedented levels. At the time, Trump had imposed blanket tariffs on Chinese imports at 145%, while China responded with 125% duties on U.S. goods. The two sides agreed to suspend most tariffs in May after talks in Geneva, with the U.S. reducing its tariffs to 30% and China reducing its levies to 10%. The latest delay resulted from talks between U.S. negotiators and their Chinese counterparts in Stockholm in late July.

Beyond China, Trump’s broader tariff initiative has taken effect on 66 countries. This raises the average U.S. tariff rate from around 2.5% before Trump returned to office to 18.6%, according to the Budget Lab at Yale University, reaching levels not seen since 1933 during the Great Depression.

Broader implications: The latest round of tariffs have triggered significant economic and political responses across Asia. India, which faces a 50% tariff rate, saw anti-American sentiment spark boycott campaigns against brands such as Amazon, Apple, Coca-Cola and McDonald’s. On Sunday, Prime Minister Narendra Modi urged self-reliance, telling a Bengaluru gathering that while Indian technology companies made products for the world, the time had come to prioritize India’s domestic needs.

Southeast Asian nations, meanwhile, have negotiated tariff rates of around 19-20%. However, they still face historically high levies that analysts say will damage their economies. Japan and South Korea negotiated better 15% rates, giving them advantages over regional competitors. Taiwan’s semiconductor sector faces a 20% tariff.

What’s next: The China situation remains the most critical variable. Uncertainty continues as negotiated deal details remain unpublished and are already generating disagreements between the U.S. and trading partners. The president’s trade agenda also faces legal challenges, with a New York trade court ruling in May that he exceeded his authority in imposing tariffs.

Trump has suggested a possible meeting with Chinese President Xi Jinping before the year ends.