The president has lived up to his “TACO Trump” nickname by giving China a 90-day extension on increased tariff rates at the 11th hour.
Tariffs as high as 145 percent were due to be implemented on goods from China at midnight Tuesday. The last-minute extension came hours after Trump provided a vague response to reporters on extending the deadline on Monday.
“We’ve been dealing very nicely with China… they have tremendous tariffs that they’re paying to the United States of America,” Trump said during a press conference at the White House. “We’ll see what happens. They’ve been dealing quite nicely. The relationship is very good with President Xi and myself.”
Trump signed a new Executive Order later on Monday. China will now have its tariff suspension deadline pushed to Nov. 10, the second time Trump has given them special treatment this year.
The White House said the extension was necessary “to facilitate ongoing and productive discussion with China about remedying trade imbalances, unfair trade practices, expanding market access for American exports, and aligning with the United States on national security and economic matters.”
Trump posted on Truth Social on Monday night that, “All other elements of the Agreement will remain the same.”
As recently as Sunday, the president was trying to broker a deal with Chinese President Xi Jinping to import U.S. soybeans.
“China is worried about its shortage of soybeans,” Trump posted on Truth Social. “Our great farmers produce the most robust soybeans. I hope China will quickly quadruple its soybean orders. This is also a way of substantially reducing China’s Trade Deficit with the USA. Rapid service will be provided. Thank you President XI.”
China is one of America’s major trading partners. Last year, the U.S imported over $438 billion worth of goods from China, including electronics, toys, and clothing.
In April, the two countries brokered an interim deal in which the U.S. would reduce its tariffs on Chinese imports from 145 percent to 30 percent, while China would lower its tariffs against U.S. imports from 125 percent to 10 percent. At the time, financial markets were panicking over a potential global trade crisis.
Pushing the extension until November will mean Chinese imports for the Christmas season will be purchased at the current lower rate. The White House stated the current 10-percent reciprocal tariff remains in place during this suspension period.
Trump’s latest round of reciprocal tariffs hit dozens of U.S. trade partners last week.
Trump earned his “TACO” nickname—which stands for “Trump Always Chickens Out”—after backing out of numerous threats posed against other countries and perceived enemies. In April, he delayed new tariffs on Mexico one day before his self-imposed deadline. After promising “90 deals in 90 days,” the president imposed a pause which Trump continued to struggle to maintain. In July, he flip-flopped on firing Federal Reserve Chair Jerome Powell.
“That’s a nasty question,” Trump said in May in response to a reporter who asked about the TACO nickname at a White House press briefing. “Don’t ever say what you said. That’s a nasty question… To me, that’s the nastiest question.”
