The US and China extend tariff truce by 90 days

Extension of agreement at key moment

The US and China have agreed to extend the ongoing tariff truce for another 90 days, pushing back planned tariff increases to 10 November 2025. If not for this decision, tariffs on Chinese goods would have risen to 145% and on US products to 125%, virtually halting trade between the countries. The current tariffs remain unchanged – 30% on Chinese imports and 10% on US goods.

The decision was announced by President Donald Trump on the Truth Social platform, announcing the signing of the executive order. China’s Ministry of Commerce issued a parallel statement suspending additional tariffs and postponing a plan to place some US companies on investment restriction lists. The extension of the truce is critical for US importers as they prepare for the holiday shopping season, particularly in the electronics, apparel and toy sectors.

Prospects for negotiations and impact on trade

The truce extension gives both sides time to intensify talks and increases the likelihood of Presidents Donald Trump and Xi Jinping meeting later this year. It is a continuation of a process begun in Geneva in May, when the parties agreed on an initial 90-day pause, and in Stockholm in July, US negotiators recommended an extension.

Figures from the US Department of Commerce show that the US trade deficit with China in June fell by around 70% year-on-year to US$9.5 billion, the lowest level since February 2004. Also looming in the background of the negotiations are the issues of increased Chinese purchases of US soybeans, export restrictions and US pressure to reduce imports of Russian oil. Experts estimate that the decision to extend the truce reduces trade tensions and offers a real chance of reaching a preliminary agreement in the autumn.