The United States and China have agreed to extend their trade truce for another 90 days, narrowly avoiding a sharp escalation in tariffs between the world’s two largest economies.
On Monday, US President Donald Trump signed an executive order delaying any new tariff hikes until November 10, while Beijing announced a matching extension on its own measures.
Under the agreement, the US will maintain its current 30% levy on Chinese imports, and China will keep its 10% tariff on American goods.
This comes after earlier threats saw Washington consider tariffs as high as 145% on Chinese products, with Beijing ready to retaliate with duties of up to 125% on US exports. Those rates were eased following trade talks in Geneva in May.
The White House said the extension would provide crucial time for negotiators to address “trade imbalances” and “unfair trade practices,” noting America’s nearly $300 billion trade deficit with China in 2024 the largest with any US trading partner.
Talks will also focus on expanding market access for US exporters, alongside national security and economic concerns.
In a statement, the Chinese embassy in Washington called for “win-win cooperation” and warned that “suppression and containment will lead nowhere.”
Beijing urged the US to lift “unreasonable” trade restrictions, promote mutually beneficial business ties, and safeguard the stability of global semiconductor supply chains.
The extension signals a temporary pause in a trade standoff that has rattled markets and strained diplomatic ties, though both sides face pressure to deliver tangible progress before the new deadline.
