China extends suspension of 24% tariffs on US goods, keeps 10% levy ahead of APEC

This is a risk-positive development. Removing the chance of a tariff snapback gives some cushion to a market rattled by the AI sell-off and the weekend’s Middle East escalation. It should support equities, the yuan and China-sensitive currencies such as the Australian dollar. It’s continuity rather than fresh easing, though, so the upside is likely to be modest unless next week’s APEC meeting delivers more. Agricultural markets, particularly soybeans, will look for signs that the truce extends to purchase commitments.--- Beijing has rolled over its tariff truce with Washington rather than let it lapse, removing a potential trade shock and setting a steadier tone for Trump and Xi’s expected meeting at APEC next week.Summary:China’s Ministry of Finance said it will continue suspending the 24% additional tariff on US goods.A 10% tariff on US goods will remain in place from November 10.The previous one-year suspension, agreed in November 2025, was due to expire this week.The move comes ahead of next week’s APEC summit in China, where Trump expects to meet Xi.The decision maintains the status quo rather than marking further tariff relief.China will continue to suspend a 24% additional tariff on US goods while keeping a 10% levy in place from November 10, its Ministry of Finance said on Monday. The move extends a key element of the trade truce between Beijing and Washington just as the original arrangement was due to lapse.The decision preserves the status quo that has applied for the past year. China first suspended the 24% portion of its retaliatory tariffs in 2025, keeping a 10% rate in place, as part of a broader de-escalation that followed talks between President Xi Jinping and US President Donald Trump. A year ago, Beijing extended that suspension for 12 months from November 10, 2025, so without a fresh decision the higher rate could have snapped back this week.The extension removes that risk and signals that both sides want to keep trade relations stable heading into next week’s APEC summit in China, where Trump has said he expects to meet Xi. The timing matters. Markets have been rattled by a sharp selloff in AI-related stocks, renewed escalation risk in the Middle East, and the controversy surrounding Nvidia chief executive Jensen Huang, whose ties to a suspected Chinese intelligence asset have added a fresh layer of sensitivity to US-China relations.Against that backdrop, a clear signal of continuity on tariffs offers some relief for risk sentiment. It reduces the chance of a new trade shock between the world’s two largest economies and supports the outlook for bilateral trade flows at a time when China’s domestic demand remains soft. Monday’s inflation data showed consumer prices rising just 0.7% from a year earlier while factory-gate prices jumped, underlining Beijing’s reliance on external demand.The announcement does not, however, mark a further easing. The 10% tariff remains in force, and the details of how long the suspension will last were not immediately clear.Attention now turns to the APEC meeting, where any progress on tariffs, technology export controls or agricultural purchases would determine whether the truce can be built upon rather than simply maintained. A bit of an everything happy session! oil down, equities up, gold up, risk-on.  This article was written by Eamonn Sheridan at investinglive.com.