The United States and China have agreed to extend their trade truce for another 90 days, just hours before a deadline that would have seen both countries sharply increase tariffs on each other’s goods.
US President Donald Trump signed an executive order on Monday to maintain the pause until 10 November, while Beijing announced a similar extension. The move means the US will keep its tariff on Chinese imports at 30%, while China will continue imposing a 10% duty on American goods.
The agreement averts a planned escalation that earlier this year had seen Washington threaten tariffs as high as 145% on Chinese products, with Beijing warning of 125% duties on US shipments. Both sides scaled back their rates following trade talks in Geneva in May.
In a statement, the White House said the extension would allow more time for negotiations aimed at addressing “trade imbalances” and “unfair trade practices”. It pointed to the nearly $300bn (£223bn) US trade deficit with China in 2024 – the largest with any trading partner – and pledged to seek greater market access for American exporters.
The Chinese embassy in Washington welcomed the pause, describing “win-win cooperation” as the right path, and warning that “suppression and containment will lead nowhere”. It called on the US to remove “unreasonable” trade restrictions, and stressed the importance of maintaining global semiconductor supply chain stability.
Tariffs have been a central feature of Trump’s economic strategy since his return to the White House in January. The president has argued they will boost domestic manufacturing, raise revenue and correct what he sees as decades of unfair treatment by trading partners.
The latest extension signals a temporary easing of tensions, but the underlying disputes remain unresolved.
