In a move that brings temporary relief to global markets, the United States and China have agreed to extend their tariff truce for an additional 90 days, delaying steep duties that would have been placed on each other’s goods. This decision comes just in time for US retailers to stock up for the year-end holiday rush, ensuring shelves remain filled with electronics, clothing, and toys at more affordable prices.
On Monday, US President Donald Trump took to his Truth Social platform to announce the signing of an executive order, pushing back the higher tariffs until 12:01 a.m. EST on the tenth of November. All other aspects of the existing truce will stay intact. In a parallel move, China’s Commerce Ministry confirmed early Tuesday that it would also suspend additional tariffs for 90 days, while postponing the inclusion of US companies on its trade and investment restriction lists, originally targeted in April.
“The United States continues to have discussions with the PRC to address the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns,” Trump’s executive order said, referring to the People’s Republic of China.
“Through these discussions, the PRC continues to take significant steps toward remedying non-reciprocal trade arrangements and addressing the concerns of the United States relating to economic and national security matters.”
The truce, initially set to expire at 12:01 a.m. EDT on Tuesday, averts a potential trade disaster. Without the extension, US tariffs on Chinese goods would have skyrocketed to 145%, with Chinese duties on US imports climbing to 125%—levels that could have effectively halted trade between the world’s two largest economies. For now, the agreement locks in a 30% US tariff on Chinese imports and a 10% Chinese tariff on US goods, providing breathing room for businesses and consumers alike.
“We’ll see what happens,” Trump remarked at a Monday news conference, emphasizing his positive rapport with Chinese President Xi Jinping. China, in turn, described the extension as “a measure to further implement the important consensus reached by the two heads of state during their June 5 call.”
The extension follows a series of diplomatic efforts. In May, the two nations announced a 90-day truce after negotiations in Geneva, Switzerland, followed by further talks in Stockholm in late July.
US negotiators returned from Sweden recommending that Trump extend the deadline, a suggestion he has now acted upon. Trump hinted at progress last week on CNBC, noting that the US and China were nearing a trade agreement, with a potential meeting with Xi planned before year’s end if a deal is finalized.
“This is positive news,” said Wendy Cutler, a former senior US trade official and current Asia Society Policy Institute vice president. “Combined with some of the de-escalatory steps both the United States and China have taken in recent weeks, it demonstrated that both sides are trying to see if they can reach some kind of a deal that would lay the groundwork for a Xi-Trump meeting this fall.”
The stakes are high. Treasury Secretary Scott Bessent has repeatedly called the triple-digit tariffs imposed earlier this year unsustainable, arguing they created a de facto trade embargo. The extension offers a window for further negotiations, with both sides working to address longstanding issues.
“It wouldn’t be a Trump-style negotiation if it didn’t go right down to the wire,” said Kelly Ann Shaw, a former White House trade official now with Akin Gump Strauss Hauer & Feld. She suggested Trump likely pushed for additional concessions.
One of these concessions includes a Sunday proposal urging China to quadruple its soybean purchases—a demand analysts deemed ambitious and which Trump did not reiterate on Monday.
Ryan Majerus, a former US trade official, noted that the extension “will undoubtedly lower anxiety on both sides as talks continue, and as the US and China work toward a framework deal in the fall.”
Beyond trade, geopolitical tensions remain. The US has called on China to halt Russian oil purchases to increase pressure on Moscow over its war in Ukraine, with Trump threatening secondary tariffs. As negotiations continue, the extended truce offers a critical opportunity to stabilize relations and pave the way for a potential breakthrough.
The Fairview Gazette will keep you updated with any tariff news.
