China Extends Suspension of 24% Tariff on U.S. Goods for Two Months as Producer Prices Rise at Fastest Pace Since 2022

China said on Monday, Nov. 9, 2026, that it will keep a 24% additional tariff on imports from the United States suspended for another two months, effectively extending a trade truce that was due to expire on Tuesday. The announcement came the same day Beijing reported that factory-gate prices rose at their fastest annual pace in more than four years while consumer inflation slowed.

What China announced

According to Xinhua, the Customs Tariff Commission of the State Council said the 24% additional tariff rate on goods originating in the United States will continue to be suspended for two months, while a 10% additional tariff stays in place. The adjustment takes effect at 1:01 p.m. Beijing time on Nov. 10. The commission said the step implements the outcomes and consensus reached at the meeting between the Chinese and U.S. heads of state in Washington.

Reuters, in a report carried by Investing.com, said other trade measures were also extended. China’s commerce ministry said export-control waivers for certain critical minerals and related technologies will run until Jan. 10, 2027. Measures affecting 11 U.S. firms on China’s unreliable entities list and 16 on its export control list will remain suspended through the same date. China’s transport ministry said the suspension of special port fees on U.S.-linked vessels will also be extended until Jan. 10, 2027, and a probe into shipping and shipbuilding supply-chain security will remain on hold. The commerce ministry added that it would extend by two months the suspension of sanctions on five U.S.-linked units of Hanwha Ocean.

The tariffs commission also said it had noted that the U.S. side has repeatedly stated an intention to use Section 301 tariffs to replace tariffs imposed under the International Emergency Economic Powers Act, which have been held invalid by judicial rulings. China said it will closely follow subsequent U.S. measures and, as appropriate, adjust its tariff countermeasures in light of developments. The Straits Times, republishing Reuters reporting, said the extension comes as Chinese President Xi Jinping and U.S. President Donald Trump are expected to meet, for the third time this year, at the Asia-Pacific Economic Cooperation leaders’ summit in Shenzhen next week.

Reuters also noted that after September’s Washington summit, both sides proposed a $60 billion package of reciprocal tariff cuts, including roughly $17 billion worth of U.S. farm goods that China imported in 2024, though the plan has yet to be finalized. U.S. Treasury Secretary Scott Bessent said in September that a two-month extension would give the two sides more time to see what they could do on the economic front, the agency reported.

Producer prices accelerate, consumer inflation slows

China’s National Bureau of Statistics reported separately that the producer price index rose 5.7% year on year in October, up from 5.0% in September. CNBC said that was the fastest pace since June 2022, the third straight month of acceleration, and above the 5.3% forecast in a Reuters poll of economists. Month on month, producer prices rose 0.7%, Xinhua reported, with the pace of increase narrowing by 0.5 percentage point from September.

Xinhua’s breakdown of the data showed energy-related sectors led the gain. Coal mining and washing prices jumped 36.6% from a year earlier, while oil and natural gas extraction prices rose 35%. Month on month, refined petroleum product manufacturing and organic chemical raw material manufacturing prices each rose 6.8%, coal processing 3.2% and gas production and supply 1.5%. The statistics bureau also said orderly capacity adjustment and artificial intelligence development pushed up some industrial prices.

Consumer prices were much calmer. The consumer price index rose 0.7% from a year earlier in October, down from 0.9% in September and slightly below the 0.8% expected in the Reuters poll, according to CNBC. The index was flat from the previous month. Core inflation, which excludes food and energy, was 0.8%, down from 1.0%. Non-food prices rose 1.5% year on year, while food prices fell 2.9%. Fresh vegetable prices dropped 16.9%, pork prices fell 8.6% and fresh fruit prices declined 3.8%, while egg prices rose 12.3%, Xinhua said. In the first ten months of 2026, consumer prices rose 0.9% from a year earlier.

CNBC quoted Zhang Zhiwei, president and chief economist at Pinpoint Asset Management, as saying the producer-price increase was driven by very strong external demand, while domestic demand has been rather weak because of the property market. He said there was no clear sign yet of stabilization in that sector, which he said weighs on household confidence and local-government revenue. Dong Lijuan, chief statistician of the urban division at the statistics bureau, said gasoline prices were the largest contributor to the consumer-price increase, offset by a sharper-than-expected fall in food prices.

Market and economic backdrop

The CSI 300 index gained 0.56% after the inflation release, CNBC reported. Barchart said China’s Shanghai Composite closed up 0.32% on Monday as sentiment improved after the State Council pledged on Friday to strengthen mechanisms to stabilize the capital market. The same report said China’s trade data for October is due on Tuesday and will offer further insight into external demand. CNBC noted the Chinese economy grew faster than expected in the third quarter and that September retail sales showed a sharp beat.

The tariff and price data arrive during a week dominated by U.S. economic events, including October consumer price figures on Tuesday and producer prices on Friday, as well as appearances by numerous Federal Reserve officials. The figures reported here are from official Chinese statements and the news organizations cited. This article is for information only and is not investment advice.