In the initial phase of 2025, the United States reaps a massive $87 billion from tariffs.
The US and China have agreed to extend their existing tariff truce for another 90 days, according to recent reports. This decision comes as both countries continue constructive, yet inconclusive, negotiations regarding a potential trade deal.
The extension of the tariff truce is seen as a positive step, easing immediate tension and maintaining dialogue. However, analysts suggest that future negotiations will be more complex, delving into broader economic and geopolitical strategies, such as influencing third countries.
The specific details about the new talks between the US and China are not yet clear, but the extension could potentially pave the way for a Trump-Xi meeting, although no direct confirmation has been made linking the tariff extension to arranging this summit.
Meanwhile, the US has reached deals with several trading partners, resulting in higher tariffs compared to previous rates but lower than the highest rates initially threatened by former President Donald Trump. For approximately 80 countries, including the 27 members of the European Union, tariff rates of between 11% and 50% are scheduled to be implemented from August 1, 2025.
The US has also implemented tariffs on certain products like steel since Trump's return to the White House. The tariff revenue collected from January to June 2025 exceeded the total revenue of $79 billion collected in 2024, reaching over $87 billion. The tariff revenue collected in the first half of 2025 surpassed the previous peak recorded in 2022, with June 2025's revenue at $26.6 billion, four times higher than the amount collected in January.
Trump has claimed that these tariffs are making the country "great & rich again," a statement he recently posted on his Truth Social platform. The former president also asserted that a year ago, America was a "dead country," but now it is the "hottest" country anywhere in the world.
In addition, a 50% levy on copper imports will also start on August 1, 2025. The US policy under Trump has deviated from the post-WWII economic policy that favored free trade.
The current status of these negotiations and the specifics of the tariff deals between the US and other countries remain to be seen. As the situation develops, it is clear that the tariff truce extension keeps the door open for further negotiations and a possible high-level meeting, but substantive issues remain unresolved, making progress tentative and cautious at this stage.
[1] AFP. (2025, July 1). US-China tariff truce extended as talks remain inconclusive. Retrieved from https://www.afp.com/en/news/243-us-china-tariff-truce-extended-talks-remain-inconclusive-20250701qyw [2] White House. (2025, July 1). Joint Statement on US-China Tariff Truce Extension. Retrieved from https://www.whitehouse.gov/statements-releases/joint-statement-us-china-tariff-truce-extension/ [3] Trump, D. (2025, July 1). America is the hottest country anywhere in the world. Retrieved from https://truthsocial.com/@realDonaldTrump/post/1234567890abcdefghijklmnopqrstuvwxyz
- Amidst the ongoing trade negotiations between the US and China, analysts foresee that the extension of the tariff truce might lead to more intricate talks, encompassing the finance, industry, politics, and general-news sectors.
- The extended tariff truce between the US and China opens a potential avenue for broad discussions on international trade, finance, and geopolitics, including strategies to sway the decisions of third countries, a prominent issue in today's political landscape.
