Pause welcome, but China tariffs still too high, AAFA says

14/08/2025
China and the US have agreed to extend a tariff truce and to continue their negotiations for a trade agreement for another 90 days.

Earlier this year, the US said it would impose total tariffs of 145% on imports from China. In retaliation, products moving in the other direction were to be subject to tariffs of 125%.

In mid-May, the two countries agreed to hold back on these tariff levels for 90 days, with the US charging an interim level of 30% on imports from China, and China imposing a 10% tariff on imports from the US.

This arrangement was scheduled to stop on August 12, but a few hours before the deadline, the two governments announced they would keep the lower rates in place for a further 90 days.
In response, the American Apparel & Footwear Association (AAFA) said it was glad of the extension. It said this would help avert “devastating consequences like product elimination and business closures”.

But AAFA added that the constant cycle of deadline delays and vague deal terms has kept US shoe and clothing companies and consumers “stuck in the same holding pattern since April 1”.
It said this was stifling innovation, strategic decision-making, and long-term growth.

AAFA chief executive, Steve Lamar, commented: “Even with the pause on the worst-case rate, a 30% tariff on our largest trading partner is still untenably high. These tariffs are being added on top of existing ones. When stacked on top of these already steep tariffs, it amounts to double taxation on hardworking families for everyday essentials like clothing and footwear.”