US, China Agree to Extend Tariff Truce for 90 Days to Avoid Trade Shock
WASHINGTON – August 12, 2025: The United States and China have agreed to extend their ongoing tariff ceasefire by an additional 90 days, averting a major escalation in their trade dispute and giving negotiators more time to work toward a long-term agreement.
US President Donald Trump announced late Monday via Truth Social that he had signed an executive order delaying planned tariff hikes on Chinese imports until November 10. Hours later, Beijing’s Commerce Ministry confirmed a reciprocal move, pausing its own planned duties on American goods for the same period.
According to Trump’s executive order, China has been “taking significant steps” to address US concerns over trade reciprocity and national security. The order emphasizes that talks with the People’s Republic of China will continue in an effort to correct “non-reciprocal trade arrangements” and strengthen economic stability.
Without this extension, US tariffs on Chinese goods would have jumped to 145%, while China’s duties on American exports were set to hit 125% — levels experts say could have created a virtual trade blockade between the world’s two largest economies. For now, the current rates — 30% on Chinese imports and 10% on US exports to China — will remain in place.
Trump said the move will give breathing room ahead of the holiday shopping season, allowing US retailers to import key goods such as electronics, apparel, and toys at lower tariff rates. Chinese officials described the truce as a measure to “implement the consensus” reached during a June 5 phone call between Trump and President Xi Jinping, adding that it should help stabilize the global economy.
The latest extension follows months of intense diplomacy. The two sides first agreed to a 90-day truce in May after talks in Geneva, reconvened in Stockholm in July, and have been quietly working toward a broader trade deal ever since. Analysts say the latest pause reduces uncertainty and could pave the way for a high-profile Trump-Xi meeting later this year.
Trump, speaking at a news conference, maintained that he has a “good relationship” with Xi and hinted that further progress could lead to a deal before the year’s end. However, he has also pressed Beijing for increased purchases of US agricultural products, including a significant rise in soybean imports.
Trade data shows the US deficit with China has fallen sharply in recent months, hitting its lowest level since February 2004. Still, both nations remain far apart on several key issues, including technology transfer rules, industrial subsidies, and — more recently — US calls for China to halt purchases of Russian oil amid the ongoing Ukraine conflict.
“This extra time should help ease market fears while giving both sides the opportunity to finalize a framework agreement,” said Ryan Majerus, a former US trade negotiator. “It’s a sign they’re willing to keep talking rather than escalate.”
