US and China Extend Trade Truce, Delay Tariff Hikes for 90 Days

Tone & Political Bias: Moderately Right-Leaning

Why: The article emphasizes Trump’s tariff strategy and economic framing while presenting US administration statements more prominently than Chinese perspectives.

Truce Extension Details

The United States and China have agreed to extend their trade truce for another 90 days, avoiding a scheduled increase in tariffs on each other’s goods. US President Donald Trump signed an executive order on Monday to keep the pause in place until November 10. Beijing made a similar announcement.

• The US will maintain a 30% tariff on Chinese imports.

• China will keep a 10% tariff on American goods.

  
  

Earlier this year, Washington had threatened tariffs as high as 145% on Chinese products, while Beijing responded with planned duties of up to 125% on US shipments.

Background on Tariff Dispute

The trade dispute escalated in April when Trump announced broad tariffs on goods from multiple countries, with China facing some of the steepest rates. Beijing retaliated, leading to tariffs in the triple digits and significant trade disruptions.

In May, the two sides agreed to roll back some measures:

• US goods entering China now face a 10% tariff.

• Chinese goods entering the US face a 30% tariff compared to the start of the year.

  
  

Goals of the Extension

According to the White House, the extension allows more time to negotiate solutions on:

• Trade imbalances — the US reported a nearly $300 billion deficit with China in 2024, the largest with any trading partner.

• Unfair trade practices.

• Increased market access for US exporters.

• National security and economic issues.

  
  

A spokesperson for the Chinese embassy in Washington called for “win-win cooperation” and urged the US to remove “unreasonable” trade restrictions. China also emphasized protecting global semiconductor production stability.

Business Impact and Uncertainty

Some US business owners say the extension does not remove uncertainty.Beth Benike, founder of Busy Baby, told BBC Radio 4 that the inability to predict future tariff rates makes it impossible to plan pricing strategies.

Trade flows have already slowed:

• US imports of Chinese goods in June were down nearly 50% compared to June 2024.

• In the first half of 2025, US imports from China totaled $165 billion, a 15% drop from the previous year.

• US exports to China fell about 20% in the same period.

  
  

Key Issues in Negotiations

Ongoing discussions cover sensitive economic and security topics, including:

• Access to China’s rare earth minerals.

• China’s purchases of Russian oil.

• US restrictions on advanced technology sales, particularly semiconductors.

  
  

Trump has recently relaxed some export curbs, allowing companies like AMD and Nvidia to sell certain chips to Chinese firms in exchange for giving 15% of revenues from those sales to the US government — a deal some critics have labeled a “shakedown.”

Related Tensions: TikTok and Agriculture

The US is also pushing for TikTok to be separated from its Chinese parent company ByteDance, a move opposed by Beijing. In agriculture, Trump has called on China to increase purchases of US soybeans, signaling that farm trade remains part of the broader talks.

Market and Policy Risks

Even with the truce, businesses face volatility due to:

• Shifting tariff levels.

• Political uncertainty in negotiations.

• The possibility of rapid escalation if talks stall.

  
  

Earlier on Monday, Trump told reporters discussions were going “nicely” but did not commit to a further extension beyond November.