US and China Extend Trade Truce by 90 Days to Avoid Tariff Hikes

The United States and China have agreed to prolong their trade ceasefire for another 90 days, just hours before both nations were set to raise tariffs on each other’s goods.

US President Donald Trump signed an executive order on Monday, extending the truce until 10 November. Beijing also confirmed it would maintain its pause on tariffs. Under the extension, the US will keep its 30% levy on Chinese imports, while China will retain a 10% tariff on American products.

Earlier this year, Washington had threatened tariffs of up to 145% on Chinese goods, while Beijing planned to impose duties of up to 125% on US exports. These rates were reduced following trade talks in Geneva in May.

According to the White House, the extension allows more time to address “trade imbalances” and “unfair trade practices,” citing a $300bn (£223bn) trade deficit with China in 2024 — the largest with any US trading partner. The negotiations will also focus on expanding access for American exporters, and tackling national security and economic concerns.

A spokesperson for China’s embassy in Washington called for “win-win cooperation” and urged the US to remove “unreasonable” trade restrictions. China also stressed the need to support businesses on both sides and ensure the stability of global semiconductor supply chains.

While the extension averts immediate tariff hikes, some US businesses say the delay prolongs uncertainty. “There’s no way to plan for the future,” said Beth Benike, founder of Busy Baby, who is unsure how final tariff rates will impact pricing.

Trade tensions escalated sharply in April after Trump introduced sweeping tariffs affecting multiple countries, with China facing some of the steepest increases. Beijing retaliated, pushing duties into triple digits and nearly halting trade between the two economies.

Although some restrictions were eased in May, Chinese imports to the US still face 30% tariffs, and US exports to China remain subject to 10% duties. Ongoing discussions also cover Chinese access to rare earth minerals, its purchase of Russian oil, and US export controls on advanced technology, including microchips.

Trump recently allowed companies such as AMD and Nvidia to resume sales of certain chips to Chinese firms in exchange for 15% of their revenues going to the US government. Meanwhile, Washington continues to press for TikTok’s separation from its Chinese parent ByteDance, a move opposed by Beijing.

Despite the truce, trade volumes have fallen in 2025. US imports of Chinese goods in June were nearly 50% lower than a year earlier, while American exports to China dropped around 20% in the first half of the year.