U.S.–China Tariff Deadline Looms on July 9

🌐 U.S.–China Tariff Deadline Looms on July 9: Global Markets on Edge

By: BIZnews Bharat International Desk
Date: July 5, 2025

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📅 What’s Happening on July 9?

A 90-day pause on new tariffs—announced in April 2025 during a temporary U.S.–China trade truce—is set to expire on July 9. This agreement had delayed Section 301 tariffs on Chinese exports, mainly covering electric vehicles (EVs), batteries, and semiconductors.

Now, unless the pause is extended or renegotiated, higher tariffs of 100% on certain Chinese EVs and components could kick in immediately.

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⚠️ Why This Matters Globally

• Market Volatility Risk: Stocks of auto, chip, and logistics companies may see turbulence as uncertainty mounts.
• Global Trade Routes Shift: China is already rerouting exports through Southeast Asia (Vietnam, Thailand) to bypass tariffs.
• Supply Chain Cost Spike: Higher input costs could affect everything from smartphones to solar panels and electric bikes.
• India’s Role Could Grow: If China gets hit with tariffs, India may see rising demand as an alternate production base.

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🇺🇸 What the U.S. Wants

• The Biden administration is under pressure to protect domestic manufacturing, especially in the EV and clean-tech sectors.
• U.S. unions and battery makers have lobbied heavily against cheaper Chinese imports.
• China is accused of “overcapacity dumping”—exporting goods below cost due to subsidies.

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🇨🇳 China’s Response

• China has warned of retaliation and accused the U.S. of violating WTO rules.
• Chinese firms are seeking alternative export routes and cutting dependency on U.S. markets.
• China also hinted at restrictions on rare earth exports, critical for U.S. tech and EV firms.

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📊 Impact on India & Emerging Markets

• Short-Term Boost: Indian EV, solar, and textile exporters could benefit as buyers diversify from China.
• Long-Term Uncertainty: Global market volatility could affect exports, FDI, and commodity prices.
• Stock Watch: Indian auto and semiconductor stocks may rally if they’re seen as alternatives.

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🔮 What to Watch

• Will Biden extend the pause or allow tariffs to trigger?
• Will China retaliate, and if so, how harshly?
• Will markets price in disruptions early next week (July 8 onward)?