US, China Extend Tariff Truce for 90 Days

The United States and China have agreed to extend their current tariff truce by 90 days, delaying steep triple-digit tariffs that were set to take effect this week.

• New Deadline: Higher tariffs are now postponed until November 10, 2025.

• Current Tariffs: US keeps a 30% tariff on Chinese goods; China maintains a 10% tariff on US goods. Without the extension, rates would have jumped to 145% (US) and 125% (China), effectively creating a trade embargo.

• Reason for Extension: Allows more time for negotiations and supports the seasonal autumn import surge ahead of the Christmas shopping season (electronics, clothes, toys).

• Statements:

  • President Trump said the US and China are making progress and may reach a deal before year-end.

  • China said the extension implements consensus reached between Trump and Xi in a June 5 call.

• Negotiations Background:

  • Truce first agreed in May after talks in Geneva; further discussions in July in Stockholm.

  • Trump reportedly sought extra concessions, including a big increase in Chinese soybean purchases.

• Economic Impact:

  • US-China trade deficit has dropped 70% from a year earlier, to its narrowest level since 2004.

  • The truce eases anxiety for both sides and maintains momentum toward a possible framework deal this fall.

• Geopolitical Angle: The US is also pressuring China to stop buying Russian oil, with Trump warning of possible secondary tariffs.

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