The United States and China have agreed to extend their trade truce until 10 November, narrowly avoiding the imposition of steep new tariffs.
In a joint statement, the world’s two largest economies confirmed that triple-digit tariffs announced earlier this year will remain suspended for an additional 90 days.
Talks between both sides last month ended on a positive note, with China’s chief negotiator expressing optimism about preserving the truce, while US officials awaited President Donald Trump’s final approval. On Monday, Trump signed an executive order formalising the extension.
Under the arrangement, Washington will delay imposing 145% tariffs on Chinese imports, while Beijing will continue its pause on 125% duties on US goods. Current tariff rates will remain at 30% for Chinese goods entering the US and 10% for American exports to China.
The White House said the extension provides more time to address trade imbalances, citing a $300bn US trade deficit with China in 2024, and to negotiate on market access, national security, and economic issues. China urged the US to lift “unreasonable” trade restrictions, work toward mutual benefit, and help stabilise global semiconductor supply chains.
Trade tensions between the two nations escalated sharply in April after Trump imposed sweeping tariffs on multiple countries, with China facing some of the heaviest levies. Beijing retaliated in kind, pushing tariffs into triple digits and disrupting trade flows. A partial agreement in May eased some measures but kept significant duties in place.
Negotiations now also cover contentious areas such as China’s rare earth exports, its purchases of Russian oil, and US restrictions on advanced technology sales. Trump recently eased certain chip export curbs, allowing companies like AMD and Nvidia to sell to Chinese firms in exchange for 15% of related revenues.
Despite the truce, trade between the two countries has declined. US government data shows imports of Chinese goods in June were nearly half of what they were a year earlier, while American exports to China fell by roughly 20% in the first half of 2025.
