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The Tariff Boogeyman Has No Teeth: China Claus Isn't Scared - Trump Delays Tariffs Again

Creatix / August 11, 2025


August 11, 2025 – Some call it the TACO trade [Trump Always Chickens Out]. We call it the boogeyman. Same difference. Tariffs are a scarecrow, a make believe, a motivational pitch for an aspirational goal of incentivizing domestic production. Reality, however, is that we cannot undue 30 years of globalization in Trump's lifetime. He's almost 80 years old and would be long dead before American manufacturing reshores to the homeland.

In a predictable audible just hours before a looming deadline, President Trump signed an executive order extending a 90-day pause on sweeping tariffs against China. He is "saving us" from the catastrophe of his own making. The extension now pushes the new deadline to November 9, 2025, the beginning of the Christmas holiday shopping season. What are the chances of President Trump imposing tariffs and ruining Christmas for all Americans? Zero. 

The tariff extension shows again that we cannot live without China; at least not the way we do now. The massive tariffs on Chinese products would kill the economy and hurt millions of Trump voters. The administration will continue negotiating with China and American businesses and consumers can almost count on trade relief during the critical holiday season. (Baton Rouge Business Report)

What's Being Postponed?

  • Without this extension, U.S. tariffs on Chinese imports would have surged to as high as 145%, while China’s retaliatory duties on U.S. goods would have jumped to 125%, signaling a full-scale trade rupture. (Wikipedia)

  • Instead, current tariff rates of 30% on Chinese imports and 10% on U.S. exports to China remain in force. (Reuters)

What’s Behind the Move?

This extension arrives amid ongoing trade talks in Geneva and Stockholm, signaling both sides' desire to keep deliberations alive. U.S. retailers, gearing up for the year-end shopping rush, particularly welcomed the decision. Analysts see this as a tactical pause, with potential to pave the way for a high-stakes meeting between Trump and Chinese President Xi Jinping this fall. (Reuters)

Trump also ramped up pressure on Beijing, calling for increased purchases of U.S. soybeans to help reduce the monumental trade deficit, but Beijing has remained noncommittal. (MarketWatch)

What’s at Stake for Businesses and Markets

  • Economists warn that had the tariffs kicked in, American consumers and businesses would have faced steep inflation and supply disruptions—as much as 67% of tariff costs could have been passed on to American consumers. (The Guardian)

  • The extension offers temporary stability for sectors like electronics, apparel, and toys—goods critical during the upcoming holiday buying season.

Summary: By extending a 90-day tariff pause through November 9, 2025, President Trump has deferred a major U.S.–China trade escalation. The move buys time for diplomacy and for retailers to prepare ahead of the pivotal holiday sales period.

Now you know it.

www.creatix.one

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