Trump extends tariff truce with China by another 90 days, avoiding a sudden escalation in the U.S.–China trade dispute. The decision came just hours before tariffs on Chinese goods were set to jump from the current 30% to as high as 145%. China was also prepared to raise its tariffs on U.S. goods to 125%, which could have resulted in a near trade freeze between the two largest economies.
The original tariff truce was agreed in May after talks in Geneva, allowing both countries a 90-day pause to continue negotiations. This latest extension means the current lower tariff rates will remain in place, giving more time for discussions. President Trump had earlier urged China to quadruple purchases of U.S. soybeans, but softened his stance before signing the executive order.
Imports from China currently face a 10% base tariff plus an additional 20% fentanyl-related duty imposed earlier this year. China responded by lowering its own tariffs on U.S. imports to 10%.
Former White House trade official Kelly Ann Shaw said this last-minute decision reflects Trump’s negotiating style. And keeping pressure on until the deadline. Trade analysts believe the move gives both sides time to work toward a wider deal that could include investment commitments and solutions to long-term trade disputes.
Treasury Secretary Scott Bessent expressed optimism about the path forward, though tensions remain over issues such as China’s purchase of Russian oil. For now, Trump extends tariff truce with China, easing global market fears and giving negotiators more breathing room.
